AkzoNobel and Axalta Coating Systems Ltd have entered into a definitive agreement to combine in an all-stock merger of equals.
The transaction will create a global coatings company with an enterprise value of approximately $25 billion, bringing together two coatings industry leaders with complementary portfolios.
The combined business will have a global footprint spanning over 160 countries.
The combination is expected to drive identified and actionable run-rate synergies of approximately $600 million, 90% of which are expected to be achieved within the first three years following the close of the transaction.
We’re excited to enter a new chapter in our long and proud history as a leader in the paints and coatings industry.
Greg Poux-Guillaume
“We’re excited to enter a new chapter in our long and proud history as a leader in the paints and coatings industry,” said Greg Poux-Guillaume, chief executive officer and chairman of the board of management of AkzoNobel.
“This merger will allow us to accelerate our growth ambitions by bringing together highly complementary technologies, expertise and passionate people to unlock our full combined potential.
“I’m excited to lead our talented teams in bringing the best of both companies to our customers and shareholders, delivering outstanding value to both.”
Great value proposition
Ben Noteboom, chairman of the supervisory board of AkzoNobel, added: “This combination represents a compelling opportunity. It’s a great value proposition for all our stakeholders, both in the Netherlands – where we maintain our domicile – and internationally, including our shareholders, customers and employees.
“It will create a world leader in coatings and is a significant step that will drive sustainable growth and allow us to better serve our customers.
“By uniting two world class organisations, we’re creating a strong platform for the future, built on a solid foundation of shared values and heritage.”
The merger brings together AkzoNobel’s and Axalta’s portfolios to create a full spectrum offering of coatings solutions, with franchises across Powder, Aerospace, Refinish, Mobility, Marine and Protective, Industrial Coatings and Decorative Paints.
Solutions across 100 brands
The combined portfolio will provide solutions across approximately 100 brands
The combined company will have a global footprint spanning 173 manufacturing sites and 91 R&D facilities worldwide.
The combination is aimed at enabling AkzoNobel and Axalta to combine existing technological capabilities across end markets, while sharing best practices is expected to accelerate innovation.
The combined company will have approximately $400 million combined annual R&D spend, 91 R&D facilities for local customer needs, approximately 4,200 research fellows, scientists and engineers, and around 3,200 granted and pending patent applications
The combined company is expected to have adjusted EBITDA margins approaching 20% and substantial cash flow generation.
$17 billion revenue
Revenues are expected to be approximately $17 billion, with adjusted EBITDA of $3.3 billion.
On closing, the combined company will have a one-tier board, composed of 11 directors – four from each company and three independent members.
The board will be led by Rakesh Sachdev, current chair of the Axalta board of directors.
Ben Noteboom, current chairman of the AkzoNobel supervisory board, will serve as vice-chair.
Current AkzoNobel CEO, Greg Poux-Guillaume, will serve as CEO of the combined company, and current Axalta CEO, Chris Villavarayan, will serve as deputy CEO.
Current Axalta SVP and CFO, Carl Anderson, will serve as the CFO of the combined company.
Current AkzoNobel CFO, Maarten de Vries, will retire from AkzoNobel prior to closing as previously announced.
New name
The combined company will assume a new name and ticker symbol, which will be announced in due course, and will have dual headquarters in Amsterdam and Philadelphia.
It will be organised under a Dutch holding company with tax residency in the Netherlands. Following a period of dual listing on Euronext Amsterdam and the New York Stock Exchange, shares of the combined company’s common stock will be listed solely on NYSE.
The transaction is expected to close in late 2026 to early 2027, subject to customary closing conditions.
