AkzoNobel is to further expand its long-term position in South and Central America after reaching an agreement to acquire Colombia-based paints and coatings company Grupo Orbis. Completion is subject to regulatory approvals and is expected by end of this year, or in early 2022. Financial details were not disclosed.
Present in ten countries in South America, Central America and the Antilles, Grupo Orbis has consolidated revenue of around COP $1.2 billion (€260 million). The transaction includes the Pintuco paints and coatings business, Andercol and Poliquim (resins) and Mundial (distribution and services).
“This is an excellent intended acquisition which aligns perfectly with our Grow & Deliver strategy of creating leading global positions and driving growth in emerging markets,” explained AkzoNobel CEO, Thierry Vanlancker. “It will expand our long-term position across South America by establishing us as a frontrunner in the Andean region and in Central America, where several countries are high on the global growth rankings for the next decade.”
Added Daniel Campos, the company’s Regional Director for South America: “It’s an historic opportunity which offers attractive growth potential across both paints and coatings. We’ll be able to access highly complementary geographical positions in several new countries in the Andean, Central America and Antilles regions, including Colombia, which is the third largest in the region.”
Commenting on the deal, CEO of Grupo Orbis, Andres Bernal, says: “This agreement represents an important growth opportunity for Orbis Group’s companies. We strongly believe there are several benefits, such as access to technology and innovation pipelines. Likewise, we find great opportunities for the development of our employees and our clients, who will be able to access an enlarged and more complete portfolio.”
In addition to creating value from global and regional product and service innovation, the intended acquisition will enable AkzoNobel to better serve customers across more geographies, as well as accessing new markets.
Both companies also share a strong belief in the transformative power of color and a highly committed approach to sustainability. It’s therefore expected that joining AkzoNobel’s “Let’s Colour” program with the expertise of the Pintuco Foundation will provide fresh impetus for further improving the quality of life for people in local communities throughout the region.
The intended transaction follows on from a series of recent acquisitions by AkzoNobel across the paints and coatings industry over the last 18 months, which have included Titan Paints in Spain and New Nautical Coatings in the U.S.
This post appeared first on Coatings World.