AkzoNobel said 30 June that the the move will strengthen its global position in speciality plastic coatings and is expected to close in the second half of the year.
Schramm, based in Germany and listed on the Hong Kong stock exchange, makes coatings for plastics, metals and electrical insulation and has grown its business by 18 percent annually over the last three years. The company's revenue for 2010 totalled Euro 115 million ($166.5 million) with earnings (EBITDA) of Euro 13.3 million.
SSCP has a strong position in the Korean mobile phone market and also supplies coatings to the wider consumer electronics industry. More than half of the combined revenues of Schramm and SSCP are in Asia, primarily in China, Korea, Vietnam and Thailand.
"This acquisition underlines our determination to accelerate sustainable growth and build global leadership positions in our core markets," said Leif Darner, AkzoNobel's executive committee member responsible for Performance Coatings. "It offers an excellent opportunity for us to significantly boost our Industrial Coatings activities, particularly in Asia."
Conrad Keijzer, managing director of AkzoNobel Industrial Coatings added that the acquisition "makes us the global leader in specialty plastic coatings for mobile devices, laptops and TVs."
Keijzer said the deal will also enhance the group's position in the market for adding colour and design to vehicle interiors, which is gaining momentum in China. Additionally, we see significant synergies in both raw materials and operational costs."
Schramm's shareholders will receive a voluntary conditional offer in cash for every Schramm share, valuing the share capital of the company at about Euro 142 million.
Schramm's largest shareholder, SSCP, has agreed to sell its outstanding shares in Schramm (70.5 percent), should the offer be accepted by shareholders.
AkzoNobel also has an agreement with SSCP regarding the purchase of SSCP's carved-out coatings business based in Korea, subject to satisfactory due diligence, SSCP shareholder approval and closing and settlement of the voluntary conditional offer for Schramm Holding AG.