Major M&A Events in the Paint & Coatings Industry in 2023

1 Eastman & Ai-RED

On February 2, Eastman Chemical Company announced that it had acquired the business and assets of Ai-RED Technology (Dalian) Co., Ltd. Ai-RED manufactures and supplies paint protection film and window film products to the automotive and construction markets in Asia Pacific. This acquisition demonstrates Eastman's commitment to driving growth in its performance films business and the paint protection and window film markets.

2 Nippon Paint&NPT

On February 6, Nippon Paint announced that its subsidiary Dulux Australia had acquired a 51% stake in NPT, which is engaged in the manufacturing and sales of sealants, adhesives and other products in Italy. Nippon Paint stated that the company has always aimed at "maximizing shareholder value" as its only management mission. Through existing business and active mergers and acquisitions, it has accumulated a strong brand and outstanding talents, and pursue continuous growth in a portfolio model.

While further establishing the European market, Nippon Paint will leverage the group's extensive sales network in Asia and the experience of Dulux Australia's paint peripheral brand Selleys in Australia and New Zealand to create broader growth opportunities. The acquisition is expected to have a positive impact on the company's EPS from the first year onwards.

3 Kansai Paint&CWS

On February 2, Japan's Kansai Paint announced that the company's European subsidiary Kansai Helios had completed the acquisition of all shares of CWS on February 1, 2023, making it a wholly-owned subsidiary of the group. Founded in 1864, CWS Group is an established paint manufacturer with more than 150 years of business experience. Centered in Germany, CWS Group has established a solid position in the manufacturing and sales of industrial powder coatings and synthetic resins in various European countries and the United States.

4 Briolf&Areco

In early February, Spanish Briolf Group announced an agreement to acquire 100% of the shares of Italian company Areco. Areco, a company based in Lombardy, Italy, has over 50 years of experience specializing in the development and manufacture of aerosol coatings for a variety of industries including decorative, DIY, etc.

The Briolf Group is a family-owned industrial group with a highly diversified global business in coatings and specialty chemicals for more than 50 years. The group is mainly engaged in the research and development, production and sales of coatings. Its business involves automotive refinishing paints, industrial coatings, plastic paints, glass packaging coatings, street art paints, etc. It has 14 subsidiaries and 2 production centers in Spain and Brazil, more than 400 employees, and is supported by an extensive sales network with operations in more than 100 countries.

5 Kuangshun Photosensitivity New-Material & Dowill Paints

On February 23, Kuangshun Photosensitivity New-Material (300537) announced that in order to further integrate the company's resources, optimize the asset structure, effectively reduce operating costs, improve operational efficiency, and better safeguard the interests of the company and all shareholders, it was decided to sign the Equity Transfer Agreement with Shanghai Dowill Paints. After full negotiation between the two parties on the financial situation, technical capability, business volume and development prospect of Shanghai Prosolar Resources Development Co., Ltd., Kuangshun Photosensitivity New-Material decided to sell the 60% equity of Shanghai Chuangxing and the principal loan receivable of Shanghai Chuangxing to 52.7587 million yuan, and the consideration of the merger transaction was 40 million yuan to Dowill Paints.

6 AkzoNobel&Sherwin-Williams

In mid-April, AkzoNobel reached an agreement with Sherwin-Williams to acquire Sherwin-Williams' decorative paint business in China to further strengthen AkzoNobel's layout and influence in the Chinese market.

On August 2, AkzoNobel officially announced the completion of the acquisition of Sherwin-Williams’ China decorative paint business. This acquisition will further strengthen AkzoNobel's layout and influence in the Chinese market to help consolidate its high-end market position and strengthen its expansion in other market segments. The annual sales of the relevant acquired business are expected to be approximately 100 million euros, with approximately 300 related employees, including Huarun Paints, a well-known decorative paint brand owned by Sherwin-Williams. The brand has been deeply involved in the local market for many years and is widely recognized.

7 Beijing New Building Materials&Tianjin Beacon Coatings

On April 28, Beijing New Building Materials (000786) issued a notice saying, The company's wholly-owned subsidiary Beijing New Building Paints and China National Building Material Co., Ltd. Signed the Equity Transfer Agreement on Tianjin Beacon Coatings Industry Development Co., Ltd. Beijing New Building Paints intends to acquire a 51% stake in Tianjin Beacon Coatings Industry Development Co., LTD for approximately RMB 130 million. Upon completion of the transaction, Beijing New Building Paints will hold a 100% stake in Tianjin Beacon Coatings Industry Development Co., LTD.

8 Beckers Group&Kansai Helios

On May 2, Beckers Group announced that it had completed the sale of its global railway coatings business to Kansai Helios. This strategic move will help Beckers Group further optimize its business portfolio, focus on R&D and investment, and help its core business usher in a new era. As a subsidiary of the world paint giant Kansai Paints, Kansai Helios has rich industry experience and strong technical strength. This strong alliance indicates that the two companies will further competitive advantages in the railway paint business, bring more innovations and breakthroughs, and provide better paint products and services for customers around the world.

9 DuPont&Spectrum

On May 2, DuPont announced that it had reached a final agreement with AEA Investors to acquire Spectrum Plastics Group. The acquisition price was US$1.75 billion, and the net purchase price after tax was US$1.72 billion. The transaction closed at the end of the third quarter of 2023. The acquisition is designed to strengthen DuPont's position in the fast-growing, low-cyclical healthcare market. After the acquisition, approximately 10% of DuPont's consolidated revenue comes from the medical and health business.

Spectrum's business complements DuPont's existing product lines of biopharmaceutical and pharmaceutical processing, medical devices and packaging, including DuPont Liveo™ silicone solutions and Tyvek® medical packaging.

10 SIKA&MBCC Group

On May 3, SIKA announced that it had completed the acquisition of MBCC Group and had previously obtained all necessary regulatory approvals. With this highly complementary acquisition, SIKA will strengthen its presence in all regions of the world, expand its range of products and services throughout the construction life cycle, and further promote the sustainable transformation of the construction industry. After antitrust regulatory reviews around the world, it took nearly two years to complete the acquisition of MBCC Group.

11Arkema&Polytec PT

On May 19, Arkema announced the acquisition of Polytec PT, a German battery and electronic product adhesive manufacturer. After completing the acquisition, Arkema increased Bostik's product supply to cope with the rapidly growing market demand for batteries and electronic products.

12 Arkema&PIAM

On June 28, Arkema acquired 54% of the shares of South Korean listed company PI Advanced Materials (PIAM) held by Glenwood Private Equity for an enterprise value of 728 million euros, and merged them all into Arkema's financial statements. The transaction is valued at approximately 20 times average EBITDA in 2021/2022, or 8 times the target EBITDA in 2027, and includes a synergy value of €30 million. Additionally, the transaction was conducted entirely in cash.