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Akzo Nobel and Axalta Agree to All-Stock Merger of Equals to Create $25 Billion Coatings Company

Management targets $600 million in savings within three years with margins near 20%.

Overview

  • Akzo Nobel shareholders would own about 55% of the combined company and Axalta shareholders about 45%, based on a 0.6539 Akzo Nobel share exchange per Axalta share.
  • The companies project 2024 pro forma revenue of roughly $17 billion and free cash flow of about $1.5 billion, with net leverage guided to 2.0x–2.5x.
  • The merged entity will be domiciled in the Netherlands and move to a sole New York Stock Exchange listing after a brief dual-listing period.
  • Leadership plans include a one-tier board chaired by Rakesh Sachdev, CEO Greg Poux-Guillaume, and Deputy CEO Chris Villavarayan, with headquarters in Amsterdam and Philadelphia.
  • Shareholder votes are expected in mid-2026, with closing targeted for late 2026 to early 2027 subject to approvals, and Axalta shares jumped about 6.6% in premarket trading on the news.