AkzoNobel to Sell Specialty Chemicals to The Carlyle Group and GIC
April 5, 2018
AkzoNobel has announced the sale of 100 percent of its Specialty Chemicals business to The Carlyle Group and GIC for an enterprise value of €10.1 billion. This transaction reportedly creates two focused and high performing businesses — Paints and Coatings, and Specialty Chemicals — as part of its strategy announced in April 2017. The transaction is expected to be completed by the end of 2018.
“We are very pleased to announce the sale of Specialty Chemicals to The Carlyle Group and GIC. We believe the business is well positioned to capture growth opportunities and further improve performance. Carlyle has significant experience in the chemicals industry and a proven track record when it comes to health, safety, innovation and sustainability,” said Thierry Vanlancker, CEO AkzoNobel.
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 Nov. 30, 2017.
Based on the year-end balance sheet, AkzoNobel 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. Most of net proceeds will be distributed to shareholders, the company stated.
Equity for this investment will come from Carlyle Partners VII, Carlyle Europe Partners IV, Carlyle’s longstanding investment partner GIC (which manages Singapore’s foreign reserves) and co-investors.