In a deal worth $75 million, Akzo Nobel is to acquire the powder coatings businesses of Ferro Corporation in the Americas and Asia Pacific.
The Cleveland, OH-based company posted total sales for its powder coatings businesses in the Americas and Asia Pacific of $100 million in 2001.
‘This acquisition not only gives us a top 3 position in what is the single largest powder market in the world. Furthermore, it complements our existing business in Mexico and builds on our existing strengths in Korea and China,’ said P. Rudy van der Meer, a member of the Akzo Nobel Board of Management responsible for Coatings.
Under the terms of the deal, Akzo Nobel will take over all of Ferro’s powder operations in the US – including factories in Nashville, TN and Brecksville, OH, and development & management facilities in Cleveland, OH.
In the Asia Pacific region, the deal includes the purchase of Ferro’s powder coatings operations in Ningbo, China, as well as its joint venture interests in Ulsan, South Korea. In total 540 people will transfer to Akzo Nobel.
The acquisition will be subject to approval by competition authorities in the US and additional approvals will be sought as and where appropriate.