Wedoany.com Report-Nov. 19, Akzo Nobel N.V. (Amsterdam) and Axalta Coating Systems Ltd. (Philadelphia) have signed a definitive all-stock merger of equals, creating a leading global coatings company valued at approximately $25 billion. The combined entity will bring together complementary portfolios of well-known brands to better serve customers across key markets and enhance value for shareholders, employees, and stakeholders. The new company will operate in more than 160 countries, with a balanced global footprint and an industry-leading innovation platform.

Greg Poux-Guillaume, CEO and Chairman 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, added: “This combination represents a compelling opportunity. 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.”

Chris Villavarayan, CEO 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. Together, AkzoNobel and Axalta are positioned to establish a profitable and sustainable path forward as a leader in the coatings industry.”

Rakesh Sachdev, Chair of the Axalta Board, added: “The Axalta Board is confident that this combination with AkzoNobel will create significant value for our shareholders. We look forward to joining Axalta’s and AkzoNobel’s strengths to create new opportunities across our global stakeholder base.”

The merger will combine AkzoNobel’s Powder Coatings, Decorative Paints, Industrial Coatings, Marine and Protective Coatings, Refinish, and Aerospace Coatings businesses with Axalta’s Refinish, Light Vehicle, and Commercial and Industrial Coatings operations. The combined company will operate 173 manufacturing sites and 91 R&D facilities globally, with a combined annual R&D spend of $400 million, approximately 4,200 research staff, and around 3,200 granted and pending patents.

The merger is expected to deliver pre-tax run-rate synergies of approximately $600 million, with 90% achievable within the first three years. Revenues are projected at $17 billion, with Adjusted EBITDA of $3.3 billion and pro forma Adjusted Free Cash Flow of $1.5 billion. Net leverage is targeted at 2.0x–2.5x, with a commitment to an investment grade credit rating.

Leadership will include Greg Poux-Guillaume as CEO, Chris Villavarayan as Deputy CEO, and Carl Anderson as CFO. The company will have dual headquarters in Amsterdam and Philadelphia, organized under a Dutch holding company with shares initially dual-listed on Euronext Amsterdam and NYSE, later solely on NYSE. AkzoNobel shareholders will own 55% and Axalta shareholders 45% of the combined entity.

The transaction is expected to close in late 2026 to early 2027, subject to shareholder and regulatory approvals. Both companies have suspended share buyback programs, with AkzoNobel paying a special €2.5 billion dividend to shareholders in connection with the deal.