PPG has reached an agreement to acquire Nordic coatings maker Tikkurila (Vantaa, Finland) for approximately €1.1 billion ($1.3 billion) including debt and cash. PPG’s all-cash offer of €25/share is a 66.2% premium compared to Tikkurila’s closing price 17 December, the last trading day prior to the announcement.
Tikkurlia, established in 1862, is a leading producer and distributor of decorative paint and coatings with operations in 11 countries and more than 80% of its revenue coming from Russia, Sweden, Finland, Poland, and the Baltic states. It reported sales of approximately €564 million in 2019 with 2,700 employees globally. Through the first nine months of 2020, Tikkurila reported revenue of €469 million, up 2.9% year on year (YOY), and adjusted EBIT of €71 million, up 30.5% YOY. Decorative paints account for roughly 83% of revenue. Industrial coatings, including wood, OEM and protective coatings, account for 17%.
“The combination of PPG and Tikkurila is extremely complementary, both geographically and from a decorative brand perspective,” said Michael McGarry, PPG chairman and CEO. “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.”
The deal is expected to be completed during the first half of 2021. Certain key shareholders of Tikkurila—including Oras Invest Oy, Varma Mutual Pension Insurance Company, Mandatum Life Insurance Company Limited and Kaleva Mutual Insurance Company, representing in aggregate approximately 29.34% of outstanding shares—have agreed to accept the PPG offer.
PJT Partners LP served as PPG’s financial advisor for the transaction, and Wachtell, Lipton, Rosen & Katz and DLA Piper Finland Attorneys Ltd served as PPG’s legal advisors. Tikkurila has appointed SEB as financial adviser and Hannes Slman Attorneys Ltd as legal adviser.
by Robert Westervelt
Source: chemweek.com
France has launched an offshore green hydrogen production platform at the country’s Port of Saint-Nazaire this week, along with its first offshore wind farm. The hydrogen plant, which its operators say is the world’s first facility of its type, coincides with the launch of another “first of its kind” facility in Sweden dedicated to storing hydrogen in an underground lined rock cavern (LRC).
The project sets up the Hydrogen Valley in Rome, the first industrial-scale technological hub for the development of the national supply chain for the production, transport, storage and use of hydrogen for the decarbonization of industrial processes and for sustainable mobility.
At first glance, hydrogen seems to be the perfect solution to our energy needs. It doesn’t produce any carbon dioxide when used. It can store energy for long periods of time. It doesn’t leave behind hazardous waste materials, like nuclear does. And it doesn’t require large swathes of land to be flooded, like hydroelectricity. Seems too good to be true. So…what’s the catch?
