Akzo Nobel to acquire Chemcraft International

Jeff Linville
AMSTERDAM — Akzo Nobel said it has agreed to buy wood coatings maker Chemcraft International, boosting Akzo’s status as one of the world’s biggest suppliers of finishes.

Akzo Nobel said Chemcraft is the largest privately owned manufacturer of industrial wood coatings in North America with 2016 revenue of $145 million and customers such as casual dining specialist Canadel.


Chemcraft is based in Winston-Salem, N.C., and has nine manufacturing facilities in the United States, Canada, and Brazil, plus distribution facilities in Mexico and Asia. It offers a full line of wood coatings products such as UV systems, polyester, polyurethane, high-solid conversion varnishes, high-solid pre- and post-catalyzed lacquers and water-based systems.

In March 2016, Chemcraft bought ICD Coatings, giving it a presence in Brazil. In a statement, Chemcraft said, “We recognize there is still potential to grow our markets in North America and Asia, but we also realize that we can grow these markets at a much faster pace if we partner and join forces through an acquisition.”

Bob Taylor, president and general manager of Akzo Nobel’s Global Industrial Finishes business, said the deal “reinforces our long-term commitment to the North American wood coatings market and provides us with important new growth opportunities in the Americas. Chemcraft is a dynamic, customer-focused organization which is perfectly aligned with the way we do business.”

Akzo Nobel CEO Hans Wijers added, “This is a strategically important acquisition which will enable us to add scale and value in a number of key North American wood coatings markets.”
 
Subject to regulatory approvals, the deal is expected to be completed in the third quarter.

The company hasn’t disclosed the cost of the acquisition, but Akzo should have cash for it with the pending sale of its pharmaceuticals unit, Organon BioSciences, to Schering-Plough for $14.4 billion.