Philadelphia-based Axalta Coating Systems, an industrial application coatings provider, and Amsterdam-based AkzoNobel N.V., a paints and coatings company, recently entered into a definitive agreement to merge.
“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,” Chris Villavarayan, Axalta CEO and president, said. “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.”
Under the terms of the agreement, Axalta shareholders will receive 0.6539 of a share of AkzoNobel stock for each share of Axalta common stock owned, and AkzoNobel will pay a special cash dividend to its shareholders. AkzoNobel shareholders will own 55 percent of the combined company while Axalta shareholders will own 45 percent.
The combined company will have dual headquarters in Amsterdam and Philadelphia and an enterprise value of approximately $25 billion. It will be organized under a Dutch holding company with tax residency in the Netherlands. Once a name and ticker symbol are selected, the company will be listed on Euronext Amsterdam and the New York Stock Exchange (NYSE), but eventually shares of common stock only will be listed on NYSE.
After closing, Greg Poux-Guillaume, AkzoNobel CEO, will become the combined company’s CEO. Chris Villavarayan will be deputy CEO. Carl Anderson, Axalta senior vice president and chief financial officer, will serve as CFO.
The board of directors will be composed of 11 directors, four from each company and three independent members. Rakesh Sachdev, Axalta board of directors chairman, will be the new board’s chairman.
“The Axalta Board is confident that this combination with AkzoNobel will create significant value for our shareholders as we move ahead,” Sachdev said. “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 two companies have complementary portfolios that when combined will offer customers approximately 100 brands of aerospace, decorative, industrial, marine and protective, mobility, powder, and refinish coatings and paints.
The combined company will have 173 manufacturing sites and 91 research and development facilities worldwide, and AkzoNobel and Axalta expect to be able to offer more products by combining existing technological capabilities.
The deal is expected to close in late 2026 to early 2027, subject to regulatory approvals, shareholder approval, the authorization for the combined company’s shares to be listed on NYSE, and other customary closing conditions.