International. AkzoNobel further strengthens its position in China after reaching an agreement with Sherwin-Williams to acquire its Chinese decorative paints business.
The Chinese decorative paintings business is known within Sherwin-Williams as the Chinese architectural paintings business. Completion, which is subject to regulatory approvals, is expected in the second half of 2023.
"Acquiring Sherwin-Williams' Chinese decorative paints business will help us achieve our growth ambitions in tier three to tier five geographies in China. This planned acquisition is a strong strategic fit and our current business is in the best position to unlock the full potential, thus offering new opportunities for employees and customers," said AkzoNobel CEO Greg Poux-Guillaume.
The company has an annual revenue of around €100 million and employs around 300 people. The transaction includes the Huarun brand, which has a long history and is well recognized in China.
Commenting on the deal, Mark Kwok, Head of North Asia Decorative Paints, said: "Acquiring this business from Sherwin-Williams, and especially its renowned decorative paint brand 'Huarun', will strongly complement our Dulux product portfolio focused on superior quality."
"This will give our customers access to a more diverse and robust offering. We look forward to welcoming these employees to the AkzoNobel China family and are excited about the opportunities we can achieve together," added Kwok.
The planned acquisition follows a number of recent acquisitions by AkzoNobel in paints and coatings in recent years, including Titan Paints in Spain and Portugal, New Nautical Coatings in the US, Orbis Group in Latin America and, most recently, Lankwitzer Lackfabrik in Germany.
