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AkzoNobel is to further strengthen its China position after reaching an agreement with Sherwin-Williams to acquire its Chinese Decorative Paints business*. Completion, which is subject to regulatory approvals, is expected in the second half of 2023.
The business has an annual revenue of about €100 million and employs around 300 people. The transaction includes the Huarun brand, which has a long history and is well recognised in China.
“Acquiring the Chinese Decorative Paints business from Sherwin-Williams will help us to deliver our growth ambitions in tier three to tier five geographical areas in China,” says AkzoNobel CEO, Greg Poux-Guillaume. “This intended acquisition is a strong strategic fit and our current business is best placed to unlock the full potential, thereby offering new opportunities for employees and customers.
Commenting on the deal, Mark Kwok, Director Decorative Paints North Asia, says: “Acquiring this business from Sherwin-Williams, and especially their renowned decorative paints brand ‘Huarun’ will strongly complement our existing premium-focused Dulux product portfolio. This will give our customers access to a more diverse and stronger offering. We look forward to welcoming these employees to the AkzoNobel China family and are excited about the opportunities we can achieve together.”
The intended acquisition follows on from a series of recent acquisitions by AkzoNobel across paints and coatings over the last years, including Titan Paints in Spain and Portugal, New Nautical Coatings in the US, Grupo Orbis in Latin America and, most recently, Lankwitzer Lackfabrik in Germany.
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