PPG Increases Tikkurila Offer
PPG Industries has increased its offer for Tikkurila to €1.24 billion, or €27.75 per share, following the receipt of a rival bid for the Finnish paints company by an unnamed party. The transaction is expected to close this quarter, subject to the usual conditions. Financial terms were not disclosed.
Last month, the US paints and coatings group had offered €1.1 billion – or €25 per share. The revised offer came on the same day that PPG announced it had agreed to acquire VersaFlex from US investment firm DalFort Capital Partners.
The tender offer for all outstanding shares in Tikkurila will start on or about Jan. 15, and the deal is expected to close in the second quarter of 2021.
“We will be able to extend the reach of the strong Tikkurila products, and immediately utilize Tikkurila’s well-established distribution network across the Nordic region for a wide variety of PPG products,” said PPG chairman and CEO Michael McGarry.
“From a cost standpoint,” McGarry said, “the Tikkurila management team has implemented a broad margin improvement program over the last couple of years, and we will continue that momentum with supply chain and other traditional acquisition-related synergies.”
VersaFlex specializes in polyurea, epoxy and polyurethane coatings for water and waste- water infrastructure as well as flooring, transportation infrastructure and industrial applications. It has about 130 employees and operates three manufacturing sites in Kansas, Oklahoma and Washington. Full year 2020 revenue is expected to be approximately $70 million.
Ram Vadlamannati, PPG senior vice president, protective and marine coatings and president, Europe, Middle East and Africa, said: “VersaFlex’s attractive segment mix with strong growth outlook, unique product offering, broad expertise, and manufacturing capabilities in polyurea and flooring coatings will complement and expand upon PPG’s current product offering.”
Last month, PPG finalized its $1.15 billion purchase of Ennis-Flint, a US manufacturer of specialized coatings for traffic safety solutions.
Author: Elaine Burridge, Freelance Journalist
