PPG Takes Tikkurila for €1.1 Billion
PPG has entered into an agreement to buy Finnish paints company Tikkurila. The US paints and coatings group has offered €25 per share, equal to a transaction value of about €1.1 billion. The deal is expected to close in the second quarter of 2021, subject to the usual conditions.
“The combination of PPG and Tikkurila is extremely complementary, both geographically and from a decorative brand perspective,” said PPG chairman and CEO Michael McGarry. “We have long admired Tikkurila’s rich history of establishing very strong decorative brands and product offerings in several northern and eastern European countries where PPG has minimal decorative presence.
He added that the merger will provide new cross-selling opportunities along with product solutions for new segments and customers.
Headquartered in Vantaa, Tikkurila has operations in 11 countries with more than 80% of its revenue coming from Finland, Sweden, Russia, Poland, and the Baltic states. Its premium brands include Tikkurila, Alcro, and Beckers. The company employs about 2,700 people worldwide and reported sales in 2019 of approximately €564 million.
Elisa Markula, Tikkurila’s CEO, said that joining forces with PPG “can help us further accelerate our development with access to new technologies and resources.”
The takeover comes just a few weeks after PPG announced the acquisition of Ennis-Flint, a manufacturer of specialized coatings for traffic safety solutions, for about $1.15 billion.
