AkzoNobel, Amsterdam, the Netherlands, this week announced the intended sale of its global Paper Chemicals business to Kemira, Finland, for EUR 153 million. Paper Chemicals is part of the company’s Pulp and Performance Chemicals business and generated annual revenue of EUR 243 million in 2013.

 

The intended sale of Paper Chemicals follows a strategic review of the business’ fit within AkzoNobel’s portfolio. As part of AkzoNobel’s company’s Pulp and Performance business within the Specialty Chemicals business area, it does not include the company’s Pulp Bleaching business, nor its Colloidal Silica business. For the paper related part of Colloidal Silica, the parties will enter into a distribution arrangement. The Pulp Bleaching business and the Eka name remain core for AkzoNobel’s Specialty Chemicals business.

 

"We are very pleased to announce this project," said AkzoNobel CEO Ton Büchner. "Kemira is a well-established player in this market and, with the sale of our Paper Chemicals business, we are following through with our strategy to focus on leading positions."

 

Werner Fuhrmann, an AkzoNobel Executive Committee member responsible for Specialty Chemicals, added that "we have concluded that our Paper Chemicals business will have a better fit with another owner, allowing us to focus on our strong chemical platforms. The Pulp and Performance Chemicals business will continue to focus on global leadership positions in pulp bleaching, colloidal silica, and expandable microspheres."

 

Jari Rosendal, president and CEO of Kemira, said that "the intended acquisition of AkzoNobel’s global Paper Chemicals business is a major step for Kemira in implementing our strategic growth plans. It further demonstrates our commitment to the industry by extending our geographical presence in EMEA, the Americas and especially APAC."

The transaction is expected to be completed in approximately six months, subject to regular consultation with employee representatives and satisfactory closing conditions, such as receipt of required regulatory clearance. AkzoNobel will continue as toll manufacturer of certain products and will enter into an agreement with regards to the colloidal silica supply to Kemira.