Kemira has reached a preliminary agreement to acquire AkzoNobel's global paper chemicals business. The two companies will also enter into a distribution agreement for AkzoNobel's colloidal silica business for retention and drainage applications for the paper industry.
The value of the transaction is 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. In 2013, revenues of the purchased paper chemicals business were EUR 243 million (EMEA 40%, Americas 30% and APAC 30%). More than 50% of the revenues were related to the packaging board grades.
“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. AkzoNobel's paper chemicals are a great fit for Kemira, and we expect to achieve significant technological and financial business synergies," says Jari Rosendal, Kemira's president and CEO.
“This divestment enables our Pulp and Performance Chemicals business to focus on its core activities," commented AkzoNobel CEO Ton Büchner. The intended sale of Paper Chemicals follows a strategic review of the business’ fit within AkzoNobel’s portfolio. The transaction does not include AkzoNobel’s Pulp Bleaching business. The Pulp Bleaching business and the Eka name remain core for AkzoNobel’s Specialty Chemicals business.
The closing of the intended transaction is expected in the first quarter of 2015 and is subject to customary closing conditions.