AkzoNobel will strengthen its African footprint after reaching an agreement with Kansai Paint to acquire its paints and coatings activities in the region. The acquisition, which is subject to regulatory approvals, is expected to be completed in 2023.
Present in 12 countries in Africa, Kansai Paint has regional consolidated revenue of around €280 million. The transaction includes the Plascon brand, which has more than 100 years of heritage in South Africa. The intended acquisition also includes automotive and protective coatings, along with coatings for wood and coil.
“Acquiring Kansai Paint’s activities in the region will help us to further expand our paints and coatings business in Africa and provide a strong platform for future growth,” said AkzoNobel CEO Thierry Vanlancker. “Kansai Paint shares our commitment to innovation and sustainability, and we look forward to combining our expertise, which will result in a wider range of innovative products and more sustainable solutions for our customers.”
Kunishi Mori, Kansai Paint’s President, said the transaction will benefit the business and the region. “We are convinced that AkzoNobel is the best owner as AkzoNobel considers the decorative paints business [to be] a core business and will therefore be able to unlock the full potential of the business, thereby contributing to the development of the African economy,” Mori said.
Prejay Lalla and Arvind Shekhawat, Chief Executive Officers of KPAL and KPEA – the respective Africa entities being sold by Kansai Paint in this transaction – welcomed AkzoNobel’s acquisition. “We believe that AkzoNobel will be the owner who will elevate the business to the next level as AkzoNobel is willing to invest in ESG, is committed to innovation, workforce development and broader career opportunities, as well as the long-term success of its paint businesses in Africa,” Lalla said.
The deal follows a series of paints and coatings acquisitions by AkzoNobel over the last two years, including Titan Paints in Spain and Portugal, New Nautical Coatings in the US, and most recently, Grupo Orbis in Latin America.