Amsterdam — Dutch chemical company AzkoNobel NV has announced the sale of its specialty chemical company to private equity firm Carlyle Group and Singapore-based investment fund GIC Pvt. Ltd. for 10.1 billion euros ($12.5 billion).
The move is part of Amsterdam-based Akzo's new strategic focus, announced in April 2017, to create two high-performing businesses of paints and coatings and specialty chemicals.
Akzo's specialty chemicals business makes ingredients for products including plastics, detergents and pharmaceuticals.
The transaction is to be completed before the end of 2018.
"The Carlyle Group has a global presence and the financial capacity to enable the specialty chemicals business achieve its full potential," said AkzoNobel in a March 27 statement.
"Today is a key milestone in creating two focused, high performing businesses, to generate value for all stakeholders. We delivered on our commitment to separate the specialty chemicals business and did so ahead of schedule," said AkzoNobel CEO Thierry Vanlancker.
Martin Sumner and Zeina Bain, managing directors at Carlyle Group, said in the news release that Carlyle is committed to growing the business and building upon its innovation capabilities.
The transaction is subject to customary closing conditions including the relevant regulatory approvals.
AkzoNobel announced its strategy last year amid a hostile takeover bid by U.S.-based PPG Industries Inc. That bid was ultimately rebuffed following rejection by the company and political resistance. At the time, the Dutch company said it would complete the separation process in 12 months.