AkzoNobel

AkzoNobel is a Dutch multinational company focused on paints and performance coatings for consumers, contractors, manufacturers and infrastructure operators. Headquartered in Amsterdam, it operates internationally through a portfolio of decorative-paint and specialist-coating brands, including Dulux, Sikkens, International, Interpon and Awlgrip. Its products are used on buildings, homes, vehicles, ships, aircraft, industrial equipment, architectural components, wood and metal surfaces. The company’s corporate history combines Dutch chemical, pharmaceutical, synthetic-fibre and paint businesses with Swedish industrial traditions. Its immediate corporate predecessor, Akzo, was created in 1969 through the merger of Algemene Kunstzijde Unie and Koninklijke Zout Organon. Akzo expanded through acquisitions and divestments, developing a diversified portfolio that included chemicals, coatings, pharmaceuticals, fibres and industrial materials. In 1994, Akzo merged with Swedish Nobel Industries to form Akzo Nobel. A major turning point came with the acquisition of Imperial Chemical Industries in 2008. The transaction strengthened AkzoNobel’s position in decorative paints, industrial coatings and related specialty products, although some acquired activities were subsequently sold or reorganized. In 2012, the company agreed to sell its North American architectural-coatings business to PPG Industries. In 2018, AkzoNobel completed the separation of its specialty-chemicals activities. The separated business was later known as Nouryon, leaving AkzoNobel more concentrated on paints and coatings. AkzoNobel’s decorative-coatings activities serve residential, commercial and professional construction markets. Its performance-coatings activities include automotive refinishing, aerospace and transportation coatings, marine and protective coatings, industrial coatings and powder coatings. The company’s international brands are adapted to local markets, regulations and customer requirements, so the exact brand mix differs by country. The business is positioned around technical performance, surface protection, design and sustainability. Its coatings are intended not only to provide colour and appearance but also to extend the life of buildings, machinery, vehicles and infrastructure by resisting corrosion, weathering, chemicals and wear. AkzoNobel remains a publicly listed Dutch company traded on Euronext Amsterdam under the symbol AKZA.

AkzoNobel’s heritage combines Dutch chemical and paint companies with Swedish industrial businesses. Some predecessor activities can be traced to companies established before the twentieth century, including businesses associated with salt production, synthetic fibres, pharmaceuticals and industrial chemicals. One important predecessor was Algemene Kunstzijde Unie, or AKU. It was created in 1929 through the combination of Vereinigte Glanzstoff-Fabriken and the Dutch synthetic-fibre company Nederlandse Kunstzijdefabriek, commonly known as ENKA. Another predecessor was Koninklijke Zout Organon, or KZO, formed in 1967 when Koninklijke Zout Ketjen merged with Koninklijke Zwanenberg Organon. These businesses brought together salt, chemicals and pharmaceutical operations. In 1969, AKU and KZO merged to form Akzo. The new group expanded through acquisitions and portfolio development. It acquired chemical and leather subsidiaries of Armour and Company in 1970, Levis Paints in 1985 and the specialty-chemicals division of Stauffer in 1987. Akzo also disposed of businesses that no longer fit its strategic direction, including its polyamides and polyesters engineering-plastics activities, which were sold to DSM in 1992. Akzo merged with Nobel Industries in 1994, creating Akzo Nobel. Nobel Industries brought Swedish industrial and coatings heritage, including activities connected to Bofors and other businesses. The combined group subsequently continued a pattern of acquisitions, integrations and divestments. It acquired Courtaulds’ industrial-coatings and synthetic-fibre activities in 1998. The fibre operations were later combined into Acordis and divested to CVC Capital Partners in 1999; the business subsequently changed ownership again. During the 1990s and 2000s, Akzo Nobel sold or reorganized a range of non-core businesses, including crop protection, printing inks, catalysts, resin activities and other chemical operations. It also acquired Canadian decorative- and industrial-coatings companies SICO and Chemcraft. In 2007, AkzoNobel sold Organon International to Schering-Plough and delisted its shares from the United States NASDAQ market. Crown Paints was sold in a management buyout in 2008. The acquisition of Imperial Chemical Industries in 2008 was one of the most significant events in the company’s modern history. ICI had substantial paint, coatings and chemical operations, and the transaction increased AkzoNobel’s international reach and brand portfolio. Integration and subsequent portfolio decisions reshaped the acquired businesses. Certain National Starch activities were sold, and other operations were divested over the following years. In 2012, AkzoNobel agreed to sell its North American architectural-coatings business to PPG Industries. The transaction formed part of an effort to focus the portfolio and improve the position of the remaining businesses. In 2017, PPG attempted to acquire AkzoNobel through a series of unsolicited proposals. AkzoNobel rejected the offers, while shareholders and activist investors debated whether the board should engage with PPG. The episode led AkzoNobel to propose separating its chemicals division and returning additional capital to shareholders. Ton Büchner, who had been chief executive during the takeover contest, stepped down in 2017 for health reasons and was succeeded by Thierry Vanlancker. AkzoNobel completed the separation of its specialty-chemicals business in 2018. The separated company adopted the name Nouryon after its acquisition by the Carlyle Group. This left AkzoNobel as a more focused paints and coatings group. Its continuing activities span decorative paints and a range of performance coatings for industrial, automotive, marine, protective, aerospace, transportation and architectural applications. The company continues to operate through a combination of global and regional brands. Dulux is associated primarily with decorative paints, Sikkens with professional architectural and refinishing applications, International with marine and protective coatings, Interpon with powder coatings, and Awlgrip with marine and yacht coatings. AkzoNobel’s present business model depends on technical formulation, manufacturing, distribution, professional relationships and brand recognition across a broad international market.

1. 2018Specialty chemicals separation

   AkzoNobel separated its specialty-chemicals business, which subsequently operated as Nouryon.

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2. 2017Rejected PPG takeover proposals

   AkzoNobel rejected several PPG Industries takeover proposals after a public debate involving shareholders and activist investors.

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3. 2012Sale of North American architectural coatings

   AkzoNobel agreed to sell its North American architectural-coatings business to PPG Industries.

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4. 2008Acquisition of Imperial Chemical Industries

   AkzoNobel acquired ICI, adding substantial decorative-paints, industrial-coatings and chemical activities.

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5. 1998Acquisition of Courtaulds coatings and fibre activities

   The acquisition expanded Akzo Nobel’s industrial-coatings and synthetic-fibre operations.

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6. 1994Merger with Nobel Industries

   Akzo and Nobel Industries merged to create Akzo Nobel.

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7. 1985Acquisition of Levis Paints

   Akzo acquired Levis Paints, strengthening its position in decorative coatings.

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8. 1969AKU and KZO merge

   AKU and KZO merged to create Akzo, establishing the main corporate foundation of the modern group.

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9. 1967Formation of Koninklijke Zout Organon

   Koninklijke Zout Ketjen merged with Koninklijke Zwanenberg Organon, creating the other principal predecessor of Akzo.

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10. 1929Formation of Algemene Kunstzijde Unie

    Vereinigte Glanzstoff-Fabriken and Nederlandse Kunstzijdefabriek combined to form AKU, an important predecessor of Akzo.

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A global, multi-brand coatings specialist combining decorative paints with technically demanding industrial, protective, transportation and marine coating systems.

• DuluxDecorative paints

  A major decorative-paints brand serving household, commercial and professional construction customers. Product families generally cover interior and exterior walls, woodwork, metal and associated building surfaces. Dulux is marketed under the Dulux name or local brand variants in different countries.

• SikkensProfessional architectural and refinishing coatings

  A professional coatings brand used in architectural decoration and automotive refinishing. It is oriented toward contractors, decorators, body shops and other trained users who require application systems, colour matching and technical support.

• InternationalMarine and protective coatings

  A specialist brand for marine vessels, offshore structures and protective environments. Its systems are designed for applications such as hull protection, corrosion control, maintenance and long-term exposure to water and harsh operating conditions.

• InterponPowder coatings

  A powder-coatings brand serving architecture, general industry, transportation and metal-fabrication applications. Powder coatings are applied to prepared substrates and cured to create durable decorative or protective finishes, often with reduced solvent use compared with liquid systems.

• AwlgripMarine and yacht coatings

  A high-performance marine-coatings brand for yachts, boats and related marine surfaces. It is associated with professional finishing systems for hulls, superstructures and other exposed components where appearance, durability and weather resistance are important.

• 2018Separate specialty chemicals activitiesStrategy

  AkzoNobel decided to focus the group on paints and coatings rather than continue operating as a diversified chemicals company.

  What changed. The specialty-chemicals business was separated and subsequently operated under the Nouryon name.

  Aftermath. AkzoNobel became a more focused coatings company with decorative, industrial, protective, marine and transportation activities.

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• 2017Reject PPG Industries takeover proposalsM&A

  PPG Industries made multiple unsolicited proposals, while shareholders and activist investors urged AkzoNobel to consider negotiations.

  What changed. AkzoNobel’s management rejected the proposals, citing valuation, antitrust, execution and cultural concerns, and announced plans to separate the chemicals business and return additional capital to shareholders.

  Aftermath. PPG abandoned its pursuit. Chief executive Ton Büchner stepped down later in 2017 for health reasons, and Thierry Vanlancker became chief executive.

  • PPG Industries — PPG increased its proposals before ultimately withdrawing after AkzoNobel continued to reject the approach.
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• 2012Sell North American architectural coatings businessStrategy

  AkzoNobel pursued portfolio simplification and agreed to divest its North American architectural-coatings operations.

  What changed. The business was sold to PPG Industries.

  Aftermath. The divestment reduced AkzoNobel’s presence in that market while supporting a broader effort to concentrate the portfolio.

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• 2008Acquire Imperial Chemical IndustriesM&A

  AkzoNobel sought to expand its international paints, coatings and chemicals portfolio through the purchase of ICI.

  What changed. The company acquired ICI and integrated selected decorative-paints, industrial-coatings and chemical activities.

  Aftermath. The transaction increased AkzoNobel’s scale and brand coverage, while several acquired or legacy activities were later sold or reorganized.

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• Tributyltin release prosecution involving International PaintControversy

  International Paint, an AkzoNobel-owned business, was prosecuted in the United Kingdom after an environmental incident involving the release of tributyltin into the River Yealm estuary. The company was fined and ordered to pay prosecution costs.

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• 2018AkzoNobel separates specialty chemicals business

  AkzoNobel completed the separation of its specialty-chemicals business. The standalone company was subsequently branded Nouryon, allowing AkzoNobel to focus on paints and coatings.

  M&A
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• 2017PPG Industries makes unsolicited takeover approach

  PPG Industries made multiple takeover proposals for AkzoNobel. AkzoNobel’s management rejected the approaches, arguing that they undervalued the company and raised regulatory and cultural concerns.

  M&ALeadership change
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• 2012AkzoNobel sells North American architectural coatings business to PPG

  The company agreed to sell its North American architectural-coatings business to PPG Industries as part of its portfolio-management program.

  M&A
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• 2008AkzoNobel agrees to acquire Imperial Chemical Industries

  AkzoNobel completed its acquisition of the British chemicals and coatings group Imperial Chemical Industries, substantially expanding its decorative and performance-coatings activities.

  M&A
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1. AkzoNobel official history
2. AkzoNobel
3. AkzoNobel official website