AkzoNobel and Axalta announce an all-stock merger of equals to form a leading global coatings powerhouse

The merger unites two global coatings leaders with complementary portfolios of renowned brands, enabling them to better serve customers across key markets while creating greater value for shareholders, employees, and other stakeholders. Built on both companies’ strong legacies and deep expertise, the combined organization will feature a balanced global presence in over 160 countries, industry-leading innovation, and a strong financial foundation. With solid margins and robust cash flow, the new entity is well positioned to deliver sustainable growth and enhanced shareholder returns, supported by 2024 revenues of around $17 billion and $1.5 billion in pro forma adjusted free cash flow. The combination is also expected to achieve approximately $600 million in identified, actionable run-rate synergies, with 90% anticipated within three years of closing the transaction.

Greg Poux-Guillaume, Chief Executive Officer and Chairman of the Board of Management of AkzoNobel said, “We’re excited to enter a new chapter in our long and proud history as a leader in the paints and coatings industry. 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.”

Ben Noteboom, Chairman of the Supervisory Board of AkzoNobel said, “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 organizations, we’re creating a strong platform for the future, built on a solid foundation of shared values and heritage.”

Chris Villavarayan, CEO and President of Axalta said, “We are pleased to enter into this transaction with AkzoNobel and join our best-in-class platforms to enhance innovation, develop new capabilities and further strengthen customer relationships. As our industry continues to grow and evolve, this combination with AkzoNobel enables us to do the same, with a sharper competitive edge and new avenues and opportunities for growth. Together, AkzoNobel and Axalta are positioned to establish a profitable and sustainable path forward as a leader in the coatings industry. Like AkzoNobel, we value our people as our greatest asset, and we are excited to unite our rich, innovation-focused cultures.”

Rakesh Sachdev, Chair of the Axalta Board of Directors said, “The Axalta Board is confident that this combination with AkzoNobel will create significant value for our shareholders as we move ahead. Led by an experienced management team with a track record of operational efficiency and excellence, we expect the meaningful synergy opportunities and enhanced financial profile of the combined company will drive substantial value creation. We look forward to joining Axalta’s and AkzoNobel’s strengths to create new opportunities across our global stakeholder base.”

The merger between AkzoNobel and Axalta creates a global coatings powerhouse with a diversified and balanced portfolio of around 100 leading brands across Powder, Refinish, Aerospace, Mobility, Marine, Industrial, and Decorative Coatings. The combined company will operate 173 manufacturing sites and 91 R&D facilities worldwide, enhancing its global scale and local market reach. With a joint annual R&D investment of $400 million and 4,200 scientists, the merger strengthens innovation capabilities to deliver advanced, customer-focused solutions. The integration is expected to generate approximately $600 million in pre-tax synergies within three years, primarily from procurement, operational efficiencies, and supply chain optimization. The new entity targets strong financial performance with projected revenues of $17 billion, Adjusted EBITDA of $3.3 billion, and margins nearing 20%, supported by robust cash flow and a commitment to maintaining investment-grade credit ratings.

Source: AkzoNobel