Corn Products Buys Akzo Nobel Unit for $1.3 Billion
U.S.-based Corn Products International will buy the National Starch business of Dutch paints firm AkzoNobel for $1.3 billion in cash, completing the Dutch firm's carve-out of non-core businesses.
AkzoNobel had acquired National Starch with its buyout of British paints firm ICI in 2008 and in April said it had received renewed expressions of interest in the unit, moving it to reclassify the business as a discontinued operation.
On Monday, AkzoNobel said Corn Products had agreed to buy the unit for $1.3 billion in cash, while also assuming an undisclosed amount of pension and employee benefit liabilities.
"This transaction today marks the strong focus on our core business and confirms AkzoNobel's transformation into the world's largest global coatings and specialty chemicals company," Chief Executive Hans Wijers said in a statement.
AkzoNobel had encountered difficulties in selling the National Starch business due to the credit crisis, but analysts had estimated that an eventual sale could fetch the firm more than €1 billion. On a cash basis, Corn Products said in a separate release the transaction is expected to be accretive by the end of 2011.
The transaction has been approved by the boards of both companies and is expected to close at the end of the third quarter, subject to the appropriate regulatory approvals. National Starch produces food ingredients and specialty starches and had 2009 revenue of $1.2 billion.
