Paints & Coatings Industry: Key Acquisition Activities; Year-End Review 2021
31st December 2021: Paints & Coatings are one of the best ways of presenting the beautiful, colorful, and protective life around us in nature. The year 2021 is about to end with positivity and motivation in life and businesses with so many life-learnings and business learnings after the pandemic effect of covid-19 in 2020. The different waves of covid-19 in some of the countries & other mutants like omicron are still affecting many lives, however, the governments and the corporates are supporting people with vaccines doses and other safety guidelines at a larger scale to minimize and check the spread of the covid-19 virus around the world.
The year 2020 and 2021 gave opportunities to big players in paints and coatings to target companies to acquire strategically to increase their market share as well as product lines or technologies expertise. The following are the notable merger & acquisition activities or news that were shared by the companies in the paints and coatings industry in 2021 (March-December): (Let's review it in the ascending order of months)
March 2, 2021: AkzoNobel announced that it has completed the acquisition of 100% of the shares of Industrias Titan S.A.U. (Titan Paints, best-known brand in Spain), strengthening its paints business and footprint in Spain. This acquisition has added three production facilities and seven logistics and service centers for decorative paints to AkzoNobel.
April 1, 2021: Covestro announced that it has successfully completed the acquisition of the Resins & Functional Materials business (RFM) from the Dutch company Royal DSM. This acquisition will expand the Group’s revenues by around EUR 1 billion and will add more than 20 sites to its global production network.
April 19, 2021: PPG announced that it has acquired Cetelon Lackfabrik GmbH, a manufacturer of coatings for automotive and light truck wheel applications with including certain proprietary technologies.
April 30, 2021: Hexion Inc. announced that it has completed the sale of its Phenolic Specialty Resin, Hexamine, and European-based Forest Products Resins businesses for approximately USD 425 million to Black Diamond and Investindustrial. The consideration consists of USD 335 million in cash and certain assumed liabilities with the remainder in future proceeds based on the performance of the business.
May 11, 2021: Hempel announced that it has signed a purchase agreement for the acquisition of Farrow & Ball, an iconic, luxury, decorative paint and wallpaper company with an annual turnover of over EUR 100 million.
May 17, 2021: PPG announced that it has completed its acquisition of Wörwag, headquarters in Stuttgart, Germany, and presence in Germany, the U.S., China, South Africa, Mexico, Spain, Switzerland, and Poland. Wörwag is a global manufacturer of coatings for industrial and automotive applications, moreover specialized in developing sustainable liquid, powder, and film coatings products.
May 19, 2021: Ferro Corporation, a leading global supplier of technology-based functional coatings and color solutions, has entered into a definitive agreement to be acquired by Prince International Corp., a portfolio company of American Securities LLC, in an all-cash transaction for USD 22.00 per share in cash, valued at approximately USD 2.1 billion. The transaction is expected to close during the first quarter of 2022 as per regulatory approvals.
May 19, 2021: IMCD N.V., a leading distributor of specialty chemicals and ingredients, announced the acquisition of Andes Chemical Corp., a provider of specialty chemicals throughout Latin America. This acquisition marks IMCD’s new market presence in Central America and Peru, and further expands its presence in Latin America and throughout the Caribbean.
May 27, 2021: Funds advised by SK Capital Partners LP, a private investment firm, announced the purchase of the Canadian coatings company Canlak Inc. and U.S.-based Valentus Specialty Chemicals. SK Capital plans to merge the two businesses to form a premier North American wood coatings company called Canlak Coatings, which will be headquartered in North Brunswick, New Jersey. The combined company will have a broad range of technologies, including traditional lacquers and varnishes, waterborne coatings, UV-cured coating systems, and high-performance polyurethanes.
June 1, 2021: As an ambitious investments growth strategy, Hempel announced that it has acquired the ground-breaking coatings technology developed by Das Lack Enertherm (DLE) to develop and launch coating products with insulating properties within the next year.
June 3, 2021: coatmaster AG, a leading coatings thickness measurement technology firm, announced the acquisition of CoatChecker GmbH, a specialist in non-destructive measurement of sealing layers. This acquisition will give benefits to both the companies and their customers by providing a broader range of contactless coating thickness measurement technologies under a single portfolio.
June 04, 2021: The Protech Group announced that it has reached an agreement to acquire the liquid coatings business of Excalibur Paints & Coatings Ltd, a protective coatings development and manufacturing company, based in Wichita Falls, Texas, USA.
June 07, 2021: RPM International Inc. announced that its Carboline, a subsidiary has acquired Dudick Inc., a provider of high-performance coatings, flooring systems, and tank linings, headquartered in Streetsboro, Ohio, and has annual net sales of approximately USD 10 million.
June 10, 2021: PPG announced that it has completed its acquisition of all of the shares of Tikkurila, a leading Nordic paint company. Tikkurila shareholders received EUR 34.00 in cash for each of the 38,711,646 million shares of Tikkurila tendered, adding to the previously acquired shares which now total represents 97.1% of Tikkurila’s issued and outstanding shares.
June 14, 2021: The Heubach Group, a leading global producer of organic, inorganic, and non-toxic anti-corrosive pigments, in partnership with SK Capital Partners, announced that they have signed a definitive agreement to acquire Clariant’s Pigments Business that will operate under the Heubach name. It will generate more than EUR 900 million in annual sales. As part of the transaction, Clariant will reinvest for a minority stake in the combined business, demonstrating its continuing commitment to the success of Clariant Pigments and the substantial growth opportunity in the combination with Heubach.
June 29, 2021: AkzoNobel announced to acquire Colombia-based paints and coatings company Grupo Orbis. As growth and deliver strategy, this acquisition will expand the market position of AkzoNobel in South & Central America. The transaction will include the Pintuco paints and coatings business, Andercol and Poliquim (resins), and Mundial (distribution and services) which are present in ten countries in South America, Central America, and the Antilles.
June 30, 2021: DIC Corporation announced that they closed on the acquisition of BASF’s global pigments business, known as BASF Colors & Effects (BCE). This acquisition will expand the product portfolio in the pigment business for a wider range of applications including those for electronic displays, cosmetics, coatings, inks, plastics, and specialty applications, and other versatile solutions. It will also add value to their technologies, services, and market presence worldwide.
July 13, 2021: PTTGC International (Netherlands) B.V., a wholly-owned subsidiary of PTT Global Chemical Public Company Limited, announced that it has signed an agreement with Allnex Holdings S.à.r.l and Allnex S.à.r.l, to acquire industrial coating resins producer Allnex Holding GmbH. This acquisition will be a steppingstone for GC Group to diversify its business portfolio into specialty chemicals and further strengthen its leading position in the chemicals business by combining environmentally-friendly innovations with advanced technologies, and also strengthen allnex's presence in Asia-Pacific.
August 2, 2021: DCL Corporation, a leading manufacturer of color pigments and dispersions for the coatings, plastics, and ink industries and a H.I.G. Capital portfolio company acquired Sun Chemical’s manufacturing facility (production and sales of the perylene and quinacridone specialty pigment product portfolios, along with select other specialty products) in Goose Creek, South Carolina.
August 3, 2021: Epolin, a division of Chroma Color Corporation and one of the leading manufacturers of near-infrared absorbing dyes and thermoplastic compounds, announced the acquisition of Adam Gates & Company LLC, a manufacturer of fine and specialty chemicals concentrating infrared absorbing dyes.
August 19, 2021: With a strategic opportunity to expand the industrial coatings business in Europe, The Sherwin-Williams Co., the top paints and coatings player globally has announced that it has signed an agreement to acquire the European industrial coatings business of Sika AG. This transaction is expected to close by the beginning of 2022. The transaction will include the European industrial coatings business with the main location and manufacturing facility in Vaihingen, Germany. The product range encompasses anticorrosive and fire protection coatings which are mainly sold in Germany, Switzerland, Poland, and Austria.
August 21, 2021: As a strategic acquisition, Richard Baker Harrison Ltd (RBH), a leading supplier of specialty functional materials, additives, and chemicals to the polymer and related industry, announced the acquisition of Dunwood Polymers, creating a new independent company, Dunwood Specialities Limited (DSL). The newly independent company DSL will offer the distribution of product lines in water-based polymer dispersions and high-quality performance materials to the adhesive/sealant; construction; coatings and agricultural sectors.
August 31, 2021: Fenix Group, leading specialty high-performance coatings, and concrete and decorative solutions provider, announced that has acquired substantially all the business assets of TCI Coatings, Lubbock, Texas, a leader of specialty and high-performance coatings for industrial applications as their 6th strong brand in their portfolio. This strategic acquisition of TCI will significantly expand their quality product line with a strong brand presence, increased customer base, and manufacturing and warehousing footprint in a potential growth region for the Industrial market and OEMs.
September 7, 2021: RPM International Inc., an international player in specialty coatings, sealants, building materials, and related services, announced that it has procured a 178,000-square-foot chemical manufacturing facility located on 120 acres in Corsicana, Texas from ChampionX Corporation. This facility will be used for multiple opportunities for the expansion of several of their high-growth product lines and it will be owned and operated by RPM’s Tremco Construction Products Group.
September 15, 2021: Axalta Coating Systems, one of the top manufacturers and suppliers of liquid and powder coatings globally, announced that it has successfully completed the acquisition of U-POL Holdings Limited which was previously announced to acquire U-POL from Graphite Capital Management LLP and other holders for £428 million (approximately USD 590 million) in July 2021. This acquisition will significantly expand the company's global refinish business by adding product lines, increasing the customer base in protective coatings and accessories primarily for the automotive aftermarket, and supporting the broader growth strategy.
October 13, 2021: As a strategic acquisition, Richard Baker Harrison Ltd (RBH), a leading supplier of specialty functional materials, additives, and chemicals to the polymer and related industry, announced the acquisition of privately owned Geniechem Ltd & Geniechem (Europe) Ltd, which will be an independent member of RBH Group and will add expertise in the CASE and high-end composite sectors to RBH extensive portfolio of products.
October 26, 2021: As a strategic move, the leading manufacturer of high-performance protective coatings and linings, Tnemec Company Inc., has acquired Epoxytec International, Inc., an innovative manufacturer of protective and structural-grade coatings and linings. The acquisition will expand their product line as well as the high-performance technologies and customers base that will include epoxy repair, coating, and lining technologies for construction and industrial maintenance, customers of water and wastewater treatment plants, mining, energy, petroleum and gas, marine, and more.
November 01, 2021: ASK Chemicals Group, (a global supplier of high-performance industrial resins and materials which are mainly used in foundries and in the production of abrasives, refractories, impregnation, coatings, insulation, and composite materials) has announced that it has completed the acquisition of the SI Group’s industrial resin business and associated manufacturing sites in Rio Claro (Brazil), Ranjangaon (India), and Johannesburg (South Africa), as well as licensed technology and multiple tolling agreements globally, which was earlier announced to sign a definitive agreement in July 2021.
November 24, 2021: Westlake Chemical Corporation, a global manufacturer and supplier of petrochemicals, polymers, and building products has announced that it has entered into a definitive agreement to acquire Hexion’s global epoxy business which includes epoxy specialty resins and base epoxy resins, and intermediates product lines for approximately USD 1.2 billion. This acquisition is expected to be closed by the first half of 2022. This acquisition will significantly expand the integrated business by adding a downstream portfolio of coatings and composite products to Wastelake's leading chloro-vinyls businesses.
December 20, 2021: Hexion Holdings Corporation, a global producer of adhesives, coatings, and composites materials has announced that it has entered into a definitive agreement to be acquired by affiliates of American Securities LLC for USD 30.00 per share in cash. Earlier in November 2021, the company has announced to sell its Epoxy business to Westlake Chemical Corporation, which is awaiting regulatory approvals and other conditions to be closing. Post-closing of the sale of Epoxy business, this transaction will take place and is expected to be closed in the first half of 2022.
December 30, 2021: PTTGC International (Netherlands) B.V., a wholly-owned subsidiary of PTT Global Chemical Public Company Limited (“GC”), announced the completion of its acquisition of industrial coating resins producer Allnex Holding GmbH (“allnex”). This acquisition has further strengthened its leading position as a global chemicals company with an expansion to 33 production sites and 23 technology centers globally including environmentally-friendly innovations with advanced technologies.
"According to AKI Research, the revised and updated estimated value for the global paints and coatings market is about USD 150,232.71 million in 2021, with an increasing y-o-y rate of 6.31% from 2020. The global paints & coatings market is estimated to grow at a CAGR of 5.06% by revenue over the forecast period 2021-2026."
Thank you for reading! Please share if you find it useful.