Amsterdam, the Netherlands -- AkzoNobel said it has received a binding offer for its Building Adhesives business by Sika AG for €260m ($347m). Building Adhesives generated sales of €185 million in 2012.
The transaction, is expected to be completed in the fourth quarter of 2013 subject to regular consultation with employee representatives. All 550 employees as well as its two manufacturing facilities in Rosendahl, Germany and Damville, France and its products and brands transfer to Swiss-based Sika AG.
Building Adhesives is a standalone business within AkzoNobel's Decorative Paints business area, serving the professional market in North Western Europe with a portfolio of brands and products including floor and wall levelling compounds, floor adhesives, tile setting, sealants and floor finishes. Its respected brands include Schönox, Casco, Cégécol, Synteko and EriKeeper.
Sika said in a telephone conversation that the deal would strengthen it in the interiors business and this is set to grow in the future. The building interiors business is less affecteed by the weather than the external products Sika produces, the firm said. Additionally, Sika is buying water-based technology which it can leverage across its entire product range, the firm added.
AkzoNobel's Wood Finishes and Adhesives business (which also operates under the Casco brand) is not the subject of this offer.
"We want to focus our Decorative Paints business at AkzoNobel on the strong strategic paint positions we have in Europe and the growth markets of Asia and South America," commented AkzoNobel CEO Ton Büchner.
Jan Jenisch, CEO of Sika: "The acquisition will make Sika a strong player in the interior finishing construction market and will complement our product range."