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
Neste will provide Avfuel with SAF in volumes able to meet the growing demands of Avfuel’s customers, including fixed base operators (FBOs), airports, flight departments, original equipment manufacturers (OEMs) and commercial operators.
Operation of the plant is a joint enterprise between Borealis, TOMRA and Zimmermann. Borealis is responsible for the plant’s commercial success and contributes its expertise and knowledge in innovation, recycling and compounding.
Johnson Matthey announces that Stephen Oxley will join the company’s board on 1st April 2021 as Chief Financial Officer (CFO).