PPG (Pittsburgh, Pennsylvania, USA) has entered into a definitive agreement to acquire leading Nordic paint company Tikkurila (Vantaa, Finland) in an all-cash transaction. Under the terms of the agreement, PPG will acquire all issued and outstanding stock, while Tikkurila shareholders will receive €25 ($30.6) per share.
Including the assumption of debt and cash, the total transaction is valued at €1.1 billion ($1.3 billion). The transaction is expected to close in the second quarter of 2021.
“The combination of PPG and Tikkurila is extremely complementary, both geographically and from a decorative brand perspective,” says Michael McGarry, PPG chairman and chief executive officer (CEO). “We have long admired Tikkurila’s rich history of establishing very strong decorative brands and product offerings in several northern and eastern European countries where PPG has minimal decorative presence.”
“We will be able to provide customers with even more paint and coatings options by bringing together Tikkurila’s high-quality and environmentally friendly decorative products and distribution capabilities in these countries with PPG’s well-respected industrial and protective coatings,” adds McGarry. “In addition, the combination will provide new cross-selling opportunities, growth opportunities for employees, and product solutions for new segments and customers. We look forward to welcoming the Tikkurila team to PPG and working with them to drive future growth.”
Established in 1862, Tikkurila is a leading producer and distributor of decorative paint and coatings with operations in 11 countries. More than 80% of its revenue coming from Finland, Sweden, Russia, Poland, and the Baltic states. In addition, Tikkurila’s industrial paint business participates in the wood and protective coatings end-use segments, among others.
“During the past three years, we have made a clear turnaround and significant progress with our strategy. Joining forces with PPG can help us further accelerate our development with access to new technologies and resources,” says Elisa Markula, CEO of Tikkurila. “We look forward to working together with PPG for an even more colorful tomorrow.”
Source: PPG, https://investor.ppg.com.