Amsterdam - Dutch coatings company AkzoNobel has sold its North American decorative paints business to PPG Industries Inc. for $1.05 billion. The deal is due for completion during the second quarter of 2013.
AkzoNobel said it made the decision to divest the business, which includes the US, Canada and Puerto Rico, in order to focus its decorative paints business on key markets in Europe and in high growth regions.
Ton Büchner, CEO of AkzoNobel, said the company has done a "great job" in turning the North American business around over the past four years. The cash proceeds from the sale of about $875 million will be used to investing in organic growth and reduce net debt.
In 2011, the North American decorative paints business had revenues of $1.5 billion, around 7 percent of AkzoNobel's total 2011 revenue. The business employs around 5000 and operates it manufacturing sites. It has a number of successful brands, including Glidden in the US and Sico in Canada.
AkzoNobel said it continues to have a strong presence in North America through its performance coatings and speciality chemicals businesses, with combined 2011 revenues of over $2.7 billion and close to 5000 employees.