Arnhem, the Netherlands-Coatings giant Akzo Nobel has made an offer of Cdn$20 per share- a total price of Cdn $295 million (Euro 211 million- to acquire Sico Inc. a leading maker of coatings in Canada.
Sico's two largest shareholders-who own about 34 percent of the company's shares-have signed a binding commitment to sell their shares and Sico's board has also recommended the offer to shareholders.
Architectural coatings producer Sico, headquartered in Quebec City, Canada, had record sales in 2005 of Cdn $312 million. The company makes the architectural paint brands Sico, Para and Betonel, as well as caulking compounds. Sico-which also produces and supplies industrial coatings-employs around 1000 people in Canada, the US and Mexico.
The firm offers a range of products including polyurethane coatings for industrial and transport uses. As well as primers and putties, Sico makes waterborne systems, non-isocyanate coatings, alkyds and thermoset enamels.
Akzo Nobel ceo Hans Wijers, who is also the company's board member responsible for coatings, said the deal "underlines our strong commitment to the company's growth strategy for coatings." This approach involves rapid acquisition activity and investing in major expansion opportunities, the group added. Sico's local bands fit perfectly into Akzo Nobel's strategy in architectural coating, Wijers added, in Akzo's announcement.
For Sico, Pierre Dufresne, president and ceo, commented that "Being part of the world's biggest coatings company will not only boost the profile of our brands, but will also give our employees access to world class expertise and technology."
Dufresne thinks Sico's customers will also benefit from enhanced products and services.
The offer for Sico is subject to regulatory approvals and acceptance by shareholders representing 66 percent of outstanding Sico shares.
Pic: Hans Wijers, Akzo Nobel ceo and board member for coatings