AkzoNobel India Changes Ownership

AkzoNobel has decided to sell its Indian company to JSW Group. The transaction is based on a total enterprise value of approximately 1.4 billion euros, equivalent to 22 times enterprise value/earnings before interest, taxes, depreciation and amortization (EV/EBITDA), and includes AkzoNobel's liquid coatings and coatings business in India. The Indian powder coatings business and international research center, which are currently part of AkzoNobel India, will be wholly owned by AkzoNobel. The divestiture is the first step of the strategic portfolio review announced in October 2024, which aims to focus the company's capital and capabilities on leading positions in major global coatings markets.

Greg Poux-Guillaume, CEO of AkzoNobel, said: "This transaction is an important milestone in the execution of our strategy. AkzoNobel India has a strong track record and we are proud of the brands and people that have made it successful. We are confident that JSW will hand over the business to a long-term partner with deep local expertise and ambition."

Parth Jindal, Managing Director of JSW Paints, added: "Coatings is one of the fastest growing sectors in India and JSW Paints is one of the fastest growing coatings companies. AkzoNobel India owns globally renowned coatings brands such as Dulux, International and Sikkens. We warmly welcome them to the JSW family. Together with AkzoNobel India, we will build a coatings company for the future. We look forward to delighting our customers and creating lasting value for our stakeholders."

Net cash proceeds are expected to be approximately €900 million, of which approximately €500 million will be used for deleveraging. Upon completion of the transaction, AkzoNobel plans to initiate a €400 million share buyback program.

The transaction involves the sale of up to 75% of AkzoNobel India and is subject to customary closing conditions, including regulatory approvals. The transaction is expected to be completed in the fourth quarter of 2025.

It is clear from Akzo Nobel's transactions and movements this year that it is implementing three key global strategies:

The first is asset portfolio optimization and capital return priority. It sold most of the Indian company's business to realize high valuations. At the same time, it retained powder coatings and R&D centers with more technical barriers and profit margins, and concentrated resources on differentiated products. In addition, it also launched stock repurchases and deleveraging operations to increase shareholder returns.

The second is to focus on high-growth markets and core categories. It is increasing its architectural coatings and decorative coatings business in emerging markets such as Asia and Latin America, divesting low-profit or non-global regions or product lines (such as North American wood coatings) to strengthen global brand assets.

The third is to strengthen local cooperation and flexible operations. Cooperate or trade with local strong companies like JSW to leverage their channels and local execution capabilities. Invest in production facilities and local innovation centers in Asia Pacific to shorten response times and get closer to customer needs.

By selling some businesses, focusing on advantageous regions and products, and forming synergies with local companies, the company is transforming from the traditional global full coverage model to a growth path of key breakthroughs + lean operations, which will enhance its global industry position and risk resistance in the medium and long term.