In a deal set to close in the fourth quarter, Dutch paints and coatings specialist AkzoNobel has agreed to sell its building adhesives business with annual sales of €185 million to Swiss chemical producer Sika for €260 million.

The intended sale of the business with 550 employees and manufacturing sites in Rosendahl, Germany, and Damville, France, follows a strategic review of AkzoNobel's portfolio, the company said. The adhesives unit is a standalone entity within the Decorative Paints segment and primarily supplies the professional market in northwestern Europe and includes floor and wall leveling compounds, floor adhesives, tile setting, sealants and floor finishes.

AkzoNobel CEO Ton Büchner said the Dutch company wants to focus its decorative paints business on the "strong strategic paint positions" it has in Europe and on the growth markets of Asia and South America. Sika's CEO, Jan Jenisch, said the acquisition, which complements its portfolio, will make his company a "strong player" in the interior finishing construction market.