Pittsburgh-based PPG announced Friday that it has entered a definitive agreement to acquire Tikkurila, a leading producer and distributor of decorative paint and coatings based in Finland.
The all cash-transaction, which includes the Tikkurila, Beckers, and ALCRO premium brands, is expected to close in the second quarter of 2021. Under the agreement, Tikkurila shareholders will receive just over $30 in cash per share owned, for a total transaction value of nearly $1.35 billion.
“The combination of PPG and Tikkurila is extremely complementary, both geographically and from a decorative brand perspective,” said Michael McGarry, PPG chairman and chief executive officer. “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.”
Tikkurila was established in 1862 and currently has operations in 11 countries. More than 80 percent of its revenue comes from Finland, Sweden, Russia, Poland, and the Baltic States.
“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,” McGarry said. “In addition, the combination will provide new cross-selling opportunities, growth opportunities for employees, and product solutions for new segments and customers.”
The company employs approximately 2,700 people globally and reported sales of more than $690 million in 2019.
“During the past three years, we have made a clear turnaround and significant progress with our strategy,” Tikkurila CEO Elisa Markula said. “Joining forces with PPG can help us further accelerate our development with access to new technologies and resources. We look forward to working together with PPG for an even more colorful tomorrow.”