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
CF Industries Holdings, Inc. (NYSE: CF) today announced that it has closed its acquisition of Incitec Pivot Limited’s (“IPL”) ammonia production complex located in Waggaman, Louisiana. Under the terms of the agreement, CF Industries purchased the Waggaman ammonia plant and related assets for $1.675 billion, subject to adjustments.
The Virgin Atlantic flight was powered entirely by SAF, that was a drop-in replacement for conventional jet fuel, but made solely from sustainable feedstocks. This was enabled through the inclusion of a new bio-based aromatic jet fuel blending component.
Cepsa SA (Madrid) has agreed a deal with C2X, an independent firm owned by AP Moller Holding with AP Moller-Maersk as minority owner, to develop a 300,000 metric tons per year renewable methanol plant at Huelva, Spain.