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AkzoNobel to divest Paper Chemicals business to Kemira for €153 million


July 8, 2014 - London

July 8, 2014

AkzoNobel today announced the intended sale of its global Paper Chemicals business to Kemira for €153 million. Paper Chemicals is part of the company's Pulp and Performance Chemicals business and generated annual revenue of €243 million in 2013.

The intended sale of Paper Chemicals follows a strategic review of the business' fit within AkzoNobel's portfolio. Paper Chemicals is part of the Pulp and Performance business within AkzoNobel's Specialty Chemicals business area. It does not include AkzoNobel's Pulp Bleaching business, nor its Colloidal Silica business. For the paper related part of Colloidal Silica, the parties will enter into a distribution arrangement. The Pulp Bleaching business and the Eka name remain core for AkzoNobel's Specialty Chemicals business.

"We are very pleased to announce this project," said AkzoNobel CEO Ton Büchner. "Kemira is a well-established player in this market and, with the sale of our Paper Chemicals business, we are following through with our strategy to focus on leading positions."

Werner Fuhrmann, AkzoNobel's Executive Committee member responsible for Specialty Chemicals, added: "We have concluded that our Paper Chemicals business will have a better fit with another owner, allowing us to focus on our strong chemical platforms. The Pulp and Performance Chemicals business will continue to focus on global leadership positions in pulp bleaching, colloidal silica and expandable microspheres."

Jari Rosendal, President and CEO of Kemira, said: "The intended acquisition of AkzoNobel's global Paper Chemicals business is a major step for Kemira in implementing our strategic growth plans. It further demonstrates our commitment to the industry by extending our geographical presence in EMEA, the Americas and especially APAC."

The transaction is expected to be completed in approximately six months, subject to regular consultation with employee representatives and satisfactory closing conditions, such as receipt of required regulatory clearance. AkzoNobel will continue as toll manufacturer of certain products and will enter into an agreement with regards to the colloidal silica supply to Kemira.

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AkzoNobel is a leading global paints and coatings company and a major producer of specialty chemicals. We supply industries and consumers worldwide with innovative products and are passionate about developing sustainable answers for our customers. Our portfolio includes well-known brands such as Dulux, Sikkens, International and Eka. Headquartered in Amsterdam, the Netherlands, we are consistently ranked as one of the leaders in the area of sustainability. With operations in more than 80 countries, our 50,000 people around the world are committed to delivering leading products and technologies to meet the growing demands of our fast-changing world.

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Safe Harbor Statement
This press release contains statements which address key issues such as AkzoNobel's growth strategy, future financial results, market positions, product development, products in the pipeline and product approvals. Such statements should be carefully considered, and it should be understood that many factors could cause forecasted and actual results to differ from these statements. These factors include, but are not limited to, price fluctuations, currency fluctuations, developments in raw material and personnel costs, pensions, physical and environmental risks, legal issues, and legislative, fiscal, and other regulatory measures. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies. For a more comprehensive discussion of the risk factors affecting our business please see our latest annual report, a copy of which can be found on our website www.akzonobel.com

AkzoNobel Press Release Paper Chemicals



This announcement is distributed by NASDAQ OMX Corporate Solutions on behalf of NASDAQ OMX Corporate Solutions clients.
The issuer of this announcement warrants that they are solely responsible for the content, accuracy and originality of the information contained therein.
Source: Akzo Nobel NV via Globenewswire

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