Kemira to Acquire AkzoNobel's Paper Chemicals Business for EUR 153 Million
AkzoNobel's paper chemicals business includes products for retention and sizing, as well as other paper chemicals, including wet strength and coating products.
July 8, 2014 - Kemira announced that it has reached a preliminary agreement to acquire AkzoNobel's global paper chemicals business for EUR 153 million. The parties will also enter into a distribution agreement for AkzoNobel's colloidal silica business for retention and drainage applications for the paper industry.
AkzoNobel's paper chemicals business includes products for retention and sizing, as well as other paper chemicals, including wet strength and coating products. In 2013, revenues of the purchased paper chemicals business were EUR 243 million (EMEA 40%, Americas 30% and APAC 30%). Over 50% of the revenues were related to the packaging board grades.
AkzoNobel said that the intended sale of its Paper Chemicals follows a strategic review of the business' fit within AkzoNobel's portfolio. Paper Chemicals is part of the Pulp and Performance business within AkzoNobel's Specialty Chemicals business area. It does not include AkzoNobel's Pulp Bleaching business, nor its Colloidal Silica business. For the paper related part of Colloidal Silica, the parties will enter into a distribution arrangement. The Pulp Bleaching business and the Eka name remain core for AkzoNobel's Specialty Chemicals business.
AkzoNobel CEO Ton Büchner commented, "We are very pleased to announce this project. Kemira is a well-established player in this market and, with the sale of our Paper Chemicals business, we are following through with our strategy to focus on leading positions."
Jari Rosendal, Kemira's President and CEO, said, "Kemira is the global leader in the development, application expertise and supply of chemicals for the pulp and paper industry. This acquisition is a major step in implementing our growth strategy and it significantly enhances our position, especially in the packaging and board industry and strengthens our presence in the Asia-Pacific region. This also demonstrates our commitment to the industry by diversifying our offering to our customers around the world. AkzoNobel's paper chemicals are a great fit for Kemira, and we expect to achieve significant technological and financial business synergies
Werner Fuhrmann, AkzoNobel's Executive Committee member responsible for Specialty Chemicals, added, "We have concluded that our Paper Chemicals business will have a better fit with another owner, allowing us to focus on our strong chemical platforms. The Pulp and Performance Chemicals business will continue to focus on global leadership positions in pulp bleaching, colloidal silica and expandable microspheres."
The deal is expected to close in the first quarter of 2015 and is subject to customary closing conditions, including completion of employee consultation proceedings and approvals of competition authorities in certain countries.
For further information about AkzoNobel, please visit: www.akzonobel.com.
To learn more about Kemira, please visit www.kemira.com
SOURCE: Kemira and AkzoNobel