Akzo Nobel, Axalta Merge to Create Global Coatings Giant

Paint and coatings manufacturer Akzo Nobel said Nov. 19 it will merge with Axalta Coating Systems, creating a global company with an enterprise value of $25 billion.

The deal will expand the geographic reach of the combined company and innovation capacity, Akzo Nobel stated in a news release. The company will be dual listed in Amsterdam and New York before moving to a single NYSE listing, according to a Reuters news service report.

After the merger is completed, the company will span 160 countries and have 173 manufacturing sites and 91 research and development facilities worldwide. Prior to the announced merger, Netherlands-based Akzo Nobel had about 70 R&D sites globally.

Revenues are expected to be approximately $17 billion, with adjusted earnings before interest, taxes, interest, depreciation and amortization of $3.3 billion and pro forma adjusted free cash flow of $1.5 billion.

The combined company will have approximately $400 million in annual R&D spend, with 4,200 research fellows, scientists and engineers working in the labs.

Akzo Nobel, known for its Delux paint brand, and Axalta, based in Philadelphia, expect the expanded reach and innovation capacity to strengthen customer relationships.

Axalta will add its refinish, light vehicle and commercial and industrial coatings offerings to Akzo Nobel’s powder coatings, industrial coatings and decorative paints business.

The company expects pre-tax run-rate synergies of approximately $600 million, with 90% of synergies expected to be achieved within the first three years following the close of the transaction. The synergies will primarily come from procurement, selling, general, and administrative expense efficiencies, footprint optimization and improved supply chain management.

The merger is expected to close in late 2026 or early 2027.