North American decorative paints business was responsible for 7% of total AkzoNobel sales in 2011, amounting to $1.5 billion
AkzoNobel has agreed to sell its North American decorative paints business – covering the US, Canada and Puerto Rico – to US group PPG for $1 billion (£614 million). The $875 million of cash generated by the deal will be used to power organic growth and reduce net debt.
The North American decorative paints business was responsible for 7% of total AkzoNobel sales in 2011, amounting to $1.5 billion. It employs 5000 people and operates across eight manufacturing sites.
The move follows big deals earlier this year in this area. In August, DuPont struck a deal to sell its performance coatings business – which makes coatings for cars and industrial equipment – for $4.9 billion to private investment group Carlyle. Later, in November, US paints and coatings company Sherwin-Williams agreed to buy Mexican firm Comex for $2.3 billion.