BASF has accepted AkzoNobel’s offer of €475 million for the German chemical giant’s industrial coatings business. The two companies said they plan to finalize and sign the required documents “in due course.”

Following consultation with employee representatives and certain regulatory approvals, the transaction is scheduled to close by the end of 2016.

The deal foresees the transfer of technologies, patents and trademarks and guarantees supply to customers worldwide from two dedicated production facilities currently operated by BASF at Deeside, England, and Vanderbijlpark, South Africa.

With sales revenue of about €300 million in 2015, BASF’s industrial coatings business supplies products for a number of end uses, including coil, furniture foil and panel coatings, wind energy and general industry and commercial transport.

“We have successfully developed our global industrial coatings business over the last years with a clear focus on attractive market segments. To further develop the business, we see positive growth prospects under the umbrella of AkzoNobel, which is a leading global player in industrial coatings,” said Markus Kamieth, president of BASF’s Coatings division.

With the sale, BASF said it will further strengthen its focus on its core automotive OEM and automotive refinish coatings businesses as well as its decorative paints business.

AkzoNobel’s CEO, Ton Büchner, said the proposed acquisition will strengthen the Dutch company’s position in the important coil coatings market and fits well with its existing business.