Heerlen, the Netherlands - Paints and coatings group AkzoNobel has signed an agreement with Dow Chemical Co. to buy its powder coatings activities. No financial details of the deal were released.
Describing the deal as enhancing its "portfolio of sustainable technologies," AkzoNobel said the deal will bring key technological know-how and significant synergy potential to its powder coatings business, as well as enhancing the company's position in the US.
Dow acquired the powder coatings activities earlier this year when it bought Rohm & Haas. AkzoNobel said the business has global sales of several hundred million dollars and employs around 700 people.
According to Leif Darner, the AkzoNobel board member responsible for Performance Coatings, "This is a strategic acquisition which will enable us to further penetrate key industrial coatings segments."
The new powder technologies added to AkzoNobel's extensive portfolio will help the group "to lead the way in meeting the increasing demand for innovative products with strong environmental profiles," Darner added, in the group's 11 Nov announcement.
Rohm & Haas, with powder coatings factories in the US, Europe and China, developed several important new technologies, AkzoNobel said, "especially for the automotive and architectural segments." AkzoNobel also gains technology for coating MDF (medium density fibreboard) and thermoplastics.
AkzoNobel now aims to have sites concentrating on specific technologies, said Rob Molenaar, managing director of AkzoNobel Powder Coatings. This will give "manufacturing enhancements and synergies," improving operational efficiency, and enabling better customers service, he added.
According to AkzoNobel, powder coatings are an attractive alternative to liquid coatings: "they are inherently sustainable because they contain no solvents and have application efficiency levels as high as 99 percent," the firm commented. Polymers used for powder coatings range from polyesters and epoxies to acrylics, polyurethanes and others.
The transaction is expected to close in the second quarter of 2010, subject to customary conditions.
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