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Has Carlyle invited AkzoNobel to acquire Axalta?
F O C U S Has Carlyle invited AkzoNobel to acquire Axalta? The Bloomberg agency reports that Axalta has been offered for sale to AkzoNobel for around €5.3 bn. AkzoNobel has not yet responded to the offer, and another company possibly interested in purchasing Axalta is Sherwin-Williams, a manufacturer of automotive coatings. The current owner, Carlyle Group acquired Axalta in Feb 2013 for €3.7 bn from DuPont. Original Source: Farbe und Lack (Online Version), 3 Sep 2014, (Website: http://www.farbeundlack.de/) (in German) © Vincentz Network 2014
Ferro to acquire tile coatings manufacturer Vetriceramici On 21 Sep 2014, Ferro Corporation announced that it has signed a definitive agreement with Milan, Italy-based private equity funds’ management company Star Capital SGR SpA and two minority owners and founders Gianfranco Padovani and Sergio Zannoni to acquire Casola Valsenio, Italy-based Vetriceramici SpA for €83 M (approximately $108 M) in cash. The transaction will be funded with excess cash and a draw on the Company’s existing revolving credit facility and is expected to close by 1 Dec 2014, subject to customary closing conditions. Vetriceramici is a leading supplier of ceramic coatings to high-end tile manufacturers. Vetriceramici had Jul 2014 trailing twelve month sales of approximately €53 M, and over the last three fiscal years achieved compounded annual sales growth of 9.3%. Vetriceramici operates manufacturing facilities in Italy and Mexico, a mixing plant in Poland and research and development and sales offices in Italy and Turkey. The transaction is expected to be accretive to Ferro’s adjusted diluted earnings per share by $0.12 to $0.14 in 2015. Based on estimated Jul 2014 trailing twelve month 4
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EBITDA and expected synergies, the acquisition purchase price of $108 M represents a transaction multiple of 4.9X. Original Source: Ferro Corp, website: http://www.ferro.com (21 Sep 2014) © Ferro Corporation 2014
2014-growth in Jotun The Jotun Group increased its sales by 6% during the first eight months of 2014, compared to the same period last year. Jotun has consolidated operating revenues of NKR 8660 M and expects sales to develop positively. The operating profit is also still strong, but decreased by 7% year-onyear to NKR 978 M. Jotun’s total investments were NKR 549 M for the year’s first eight months and are in line with previous years and Jotun’s strategic ambitions. Profit for the period increased by 1%, from NKR 708 M to NKR 714 M. Original Source: Jotun, website: http://www.jotun.com (24 Sep 2014) © Jotun 2014
BASF opens chemical complex for architectural coatings in Dahej BASF India Limited has inaugurated its large-scale chemical production complex at Dahej in Gujarat, India. The cost of the project is Rup 1000 crore (approximately €150 M). The site includes an integrated hub for polyurethane manufacturing and production facilities for care chemicals and polymer dispersions. The polymer dispersions plant will expand BASF’s production footprint in the dispersions business, complementing the Mangalore facility. It will serve paper and board, architectural coatings, construction, adhesives, and fibre bonding customers, located in northern and western India. The integrated polyurethane manufacturing facility will host a methylene diphenyl diisocyanate (MDI) splitter for processing crude MDI. The site will also produce
C O AT I N G S Elastollan thermoplastic polyurethane (TPU), Cellasto microcellular polyurethane components and polyurethane systems. The site currently employs 200 people directly and 300 people indirectly. In the future, the site will offer direct employment opportunity to 50 additional people. Supporting state-of-the-art environment, health and safety facilities, the site has recorded zero lost-time injuries during construction. (1 crore=10 M, 1 lakh=100,000). Original Source: BASF, 2014. Found on SpecialChem Coatings and Inks Formulation, 9 Oct 2014, (Website: http://www.specialchem4coatings.com)
DuPont announces $100 M investment in Texas DuPont is to invest over $100 M in its high performance material plants in Texas. The project will cover a period of 3-4 years with a third of the investment to be made before the end of 2015. DuPont will expand production of speciality resins (special grades of EVA, ethylene copolymers) used for consumer products. The group is to target the markets for food packaging, fuel-saving automotives and building coatings as well as improved solutions for the glass sector. Original Source: Chimie Pharma Hebdo, 22 Sep 2014, (689), (Website: http://www.industrie.com/chimie) (in French) © ETAI Information 2014
PPG celebrates new passive fire protection coatings centre in Kunshan, China PPG Industries has celebrated the inauguration of a passive fire protection (PFP) coatings research and development centre at its Kunshan site. Groundbreaking took place in Sep 2013, and it is the first PFP coatings laboratory in Asia. The centre will provide technical support to PPG’s global PFP coatings business and develop new PFP coatings suited to the demands of the local market and customers. NOVEMBER 2014
Ferro to acquire tile coatings manufacturer Vetriceramici On 21 Sep 2014, Ferro Corporation announced that it has signed a definitive agreement with Milan, Italy-based private equity funds’ management company Star Capital SGR SpA and two minority owners and founders Gianfranco Padovani and Sergio Zannoni to acquire Casola Valsenio, Italy-based Vetriceramici SpA for €83 M (approximately $108 M) in cash. The transaction will be funded with excess cash and a draw on the Company’s existing revolving credit facility and is expected to close by 1 Dec 2014, subject to customary closing conditions. Vetriceramici is a leading supplier of ceramic coatings to high-end tile manufacturers. Vetriceramici had Jul 2014 trailing twelve month sales of approximately €53 M, and over the last three fiscal years achieved compounded annual sales growth of 9.3%. Vetriceramici operates manufacturing facilities in Italy and Mexico, a mixing plant in Poland and research and development and sales offices in Italy and Turkey. The transaction is expected to be accretive to Ferro’s adjusted diluted earnings per share by $0.12 to $0.14 in 2015. Based on estimated Jul 2014 trailing twelve month 4
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EBITDA and expected synergies, the acquisition purchase price of $108 M represents a transaction multiple of 4.9X. Original Source: Ferro Corp, website: http://www.ferro.com (21 Sep 2014) © Ferro Corporation 2014
2014-growth in Jotun The Jotun Group increased its sales by 6% during the first eight months of 2014, compared to the same period last year. Jotun has consolidated operating revenues of NKR 8660 M and expects sales to develop positively. The operating profit is also still strong, but decreased by 7% year-onyear to NKR 978 M. Jotun’s total investments were NKR 549 M for the year’s first eight months and are in line with previous years and Jotun’s strategic ambitions. Profit for the period increased by 1%, from NKR 708 M to NKR 714 M. Original Source: Jotun, website: http://www.jotun.com (24 Sep 2014) © Jotun 2014
BASF opens chemical complex for architectural coatings in Dahej BASF India Limited has inaugurated its large-scale chemical production complex at Dahej in Gujarat, India. The cost of the project is Rup 1000 crore (approximately €150 M). The site includes an integrated hub for polyurethane manufacturing and production facilities for care chemicals and polymer dispersions. The polymer dispersions plant will expand BASF’s production footprint in the dispersions business, complementing the Mangalore facility. It will serve paper and board, architectural coatings, construction, adhesives, and fibre bonding customers, located in northern and western India. The integrated polyurethane manufacturing facility will host a methylene diphenyl diisocyanate (MDI) splitter for processing crude MDI. The site will also produce
C O AT I N G S Elastollan thermoplastic polyurethane (TPU), Cellasto microcellular polyurethane components and polyurethane systems. The site currently employs 200 people directly and 300 people indirectly. In the future, the site will offer direct employment opportunity to 50 additional people. Supporting state-of-the-art environment, health and safety facilities, the site has recorded zero lost-time injuries during construction. (1 crore=10 M, 1 lakh=100,000). Original Source: BASF, 2014. Found on SpecialChem Coatings and Inks Formulation, 9 Oct 2014, (Website: http://www.specialchem4coatings.com)
DuPont announces $100 M investment in Texas DuPont is to invest over $100 M in its high performance material plants in Texas. The project will cover a period of 3-4 years with a third of the investment to be made before the end of 2015. DuPont will expand production of speciality resins (special grades of EVA, ethylene copolymers) used for consumer products. The group is to target the markets for food packaging, fuel-saving automotives and building coatings as well as improved solutions for the glass sector. Original Source: Chimie Pharma Hebdo, 22 Sep 2014, (689), (Website: http://www.industrie.com/chimie) (in French) © ETAI Information 2014
PPG celebrates new passive fire protection coatings centre in Kunshan, China PPG Industries has celebrated the inauguration of a passive fire protection (PFP) coatings research and development centre at its Kunshan site. Groundbreaking took place in Sep 2013, and it is the first PFP coatings laboratory in Asia. The centre will provide technical support to PPG’s global PFP coatings business and develop new PFP coatings suited to the demands of the local market and customers. NOVEMBER 2014