AkzoNobel and Axalta to Combine in All-Stock Merger of Equals, Creating a Premier Global Coatings Company

Core Insights - Akzo Nobel N.V. and Axalta Coating Systems Ltd. have announced a definitive agreement for an all-stock merger of equals, creating a global coatings company with an enterprise value of approximately $25 billion [1][5] Company Overview - The merger combines two industry leaders with complementary portfolios, enhancing customer service across key markets and increasing value for shareholders and stakeholders [2][10] - The combined company will have a diversified portfolio of leading brands, including approximately 100 well-known brands across various coatings solutions [10] Financial Profile - The combined entity is projected to generate approximately $17 billion in revenues and $1.5 billion in pro forma Adjusted Free Cash Flow, with strong EBITDA margins approaching 20% [3][10] - The merger is expected to yield identified run-rate synergies of approximately $600 million, with 90% of these synergies anticipated to be realized within the first three years post-transaction [3][10] Leadership and Governance - The combined company will have a one-tier Board led by Rakesh Sachdev from Axalta, with Greg Poux-Guillaume from AkzoNobel serving as CEO [7][8] - The Board will consist of 11 directors, including four from each company and three independent members [7] Geographic and Operational Reach - The merger will expand the geographic footprint to over 160 countries, with 173 manufacturing sites and 91 R&D facilities worldwide [10] - The combined company aims to enhance customer-centric innovation by leveraging existing technological capabilities across end markets [10] Transaction Details - Under the agreement, Axalta shareholders will receive 0.6539 shares of AkzoNobel stock for each share of Axalta common stock owned [11] - AkzoNobel will pay a special cash dividend of €2.5 billion minus any regular dividends paid in 2026 prior to completion [12] Timeline and Approvals - The transaction is expected to close in late 2026 to early 2027, pending shareholder and regulatory approvals [13]