AkzoNobel (Amsterdam, Netherlands) has completed the acquisition of the Chinese Decorative Paints business* of Sherwin-Williams. The acquisition will further boost AkzoNobel’s position in China and allow the company further market segmentation and reinforce its position outside of the premium segment.
According to AkzoNobel, the business has annual revenues of approximately €100 million (~$109 million USD) and employs around 300 people. The transaction includes the renowned Huarun decorative paints brand, which has a long history of recognition in China.
This acquisition was first announced in April 2023, when it was noted that the transaction was expected to close in the second half of 2023, pending customary regulatory approvals.
Back in April, Sherwin-Williams Chairman and CEO John G. Morikis made the following remarks: “The divesture of our China architectural business aligns with our ongoing strategy to optimize our portfolio, brands, and customer programs to drive continued value for our shareholders. We are confident our resources can be better prioritized to other areas of our company to offer greater growth and higher returns and cash flow. We remain committed to growing our industrial coatings in the region, and we thank the employees of the architectural paint business for their contributions to Sherwin-Williams.”
The paint business being divested became part of Sherwin-Williams through the 2017 acquisition of The Valspar Corporation.
* The Chinese Decorative Paints business is known within Sherwin-Williams as the Chinese Architectural Paint business.
Source: AkzoNobel, www.akzonobel.com.