STOCKWATCH

Akzo Nobel India Ltd Announces Strategic Review of Portfolio, Plans to Sell Powder Coatings Business and Buyback IP Rights

Akzo Nobel India Ltd, a leading paint and coatings company, has announced a strategic review of its portfolio. The company plans to sell its powder coatings business and buyback the intellectual property (IP) rights to decorative paints. The strategic review is aimed at redeploying capital towards growing the core paint and coatings business, with a initial focus on South Asia. The company recognizes that India is outperforming the industry and is in a sweet spot, but there is a strategic mismatch between the group’s priorities and the India operation, particularly in the decorative paints segment. The proposed transaction includes AkzoNobel buying out the Powder Coatings business and the International Research Centre, and selling the IP along with the brand to the India subsidiary. The valuation of the powder coatings business is estimated at ¥20.7 billion, based on a blended source of market multiple and discounted cash flows for future investments. This translates to approximately 24.5x of EBITDA.

• Akzo Nobel India Ltd announces strategic review of portfolio
• Plans to sell powder coatings business and buyback IP rights
• Initial focus on South Asia
• India operation outperforming the industry
• Valuation of powder coatings business at ¥20.7 billion