AkzoNobel announces the sale of 100% of its Specialty Chemicals business to The Carlyle Group and GIC for an enterprise value of €10.1 billion (US$12.4 billion). The transaction creates two businesses - Paints and Coatings and Specialty Chemicals. The transaction is expected to be completed before the end of 2018.
The board of management and the supervisory board concludes that a private sale to The Carlyle Group and GIC is in the best interests of AkzoNobel, Specialty Chemicals and its respective stakeholders, including employees, shareholders and customers, according to the company. This is reportedly the outcome of a thorough dual-track process during which the boards of AkzoNobel carefully considered both a legal demerger and a private sale.
The Carlyle Group has a global presence and the financial capacity to enable the Specialty Chemicals business to achieve its full potential, according to AkzoNobel. Carlyle reportedly has extensive experience investing in chemicals, unlocking long-term potential and creating value in its portfolio companies. The firm also has a strong focus on environmental, social and governance (ESG) aspects and building positive working relationships with wider stakeholders (employees, unions and local communities).
The transaction is subject to customary closing conditions including the relevant regulatory approvals and consultation with the relevant employee representative bodies. AkzoNobel obtained shareholder approval for the separation at an Extraordinary General Meeting held on November 30, 2017.
The transaction values Specialty Chemicals at €10.1 billion (enterprise value). On the basis of the year-end balance sheet, AkzoNobel says it expects to receive a cash payment of €8.9 billion. Following deduction of deal and separation related costs, as well as other previously announced liabilities, the net proceeds are expected to be around €7.5 billion. The vast majority of net proceeds will reportedly be distributed to shareholders.
For more information, visit: www.akzonobel.com
