TAGS: Architectural Coatings
PPG has entered into a definitive agreement to acquire Tikkurila in an all-cash transaction. Under the terms of the agreement, PPG will commence a tender offer to acquire all of the issued and outstanding stock of Tikkurila.
Transaction to Close in the Second Quarter of 2021
Pursuant to the offer, Tikkurila shareholders will receive €25.00 in cash for each share of Tikkurila stock they own, for a total transaction value of approximately €1.1 billion, including the assumption of debt and cash. The transaction is expected to close in the second quarter of 2021, subject to customary closing conditions.
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The combination of PPG and Tikkurila is extremely complementary, both geographically and from a decorative brand perspective. We have long admired Tikkurila’s rich history of establishing very strong decorative brands and product offerings in several northern and eastern European countries where PPG has minimal decorative presence,” said Michael McGarry, PPG chairman and chief executive officer.
Combination for New Cross-selling Opportunities
PPG will be able to provide customers with even more paint and coatings options by bringing together Tikkurila’s high-quality and environmentally friendly decorative products and distribution capabilities in these countries with PPG’s industrial and protective coatings. In addition, the combination will provide new cross-selling opportunities, growth opportunities for employees, and product solutions for new segments and customers.
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During the past three years, we have made a clear turnaround and significant progress with our strategy. Joining forces with PPG can help us further accelerate our development with access to new technologies and resources. We look forward to working together with PPG for an even more colorful tomorrow,” said Elisa Markula, CEO of Tikkurila.
Tikkurila was established in 1862, and is headquartered in Vantaa, Finland. The company is one of the leading producers and distributors of decorative paint and coatings.
Source: PPG