BASF has announced it intends to sell its global industrial coatings business to AkzoNobel for €475 million.

  “BASF and AkzoNobel have reached a general agreement on the sale of the industrial coatings business of BASF’s Coatings division to AkzoNobel for €475 million,” a company statement said.

The transaction would include technologies, patents and trademarks, as well as the transfer of two dedicated production sites, one in Deeside, England, and one in Vanderbijlpark, South Africa.

BASF and AkzoNobel intend to finalise and sign detailed transaction documents in due course. The planned transaction is subject to the required consultation with employee representatives and certain regulatory approvals. BASF and AkzoNobel intend to complete the transaction by the end of 2016.

BASF’s industrial coatings business generated sales of approximately €300 million in 2015 and supplies products for a number of end uses, including coil, furniture foil and panel coatings, as well as coatings for wind energy plants, 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 this transaction, BASF will further strengthen its focus on its core automotive OEM and automotive refinish coatings businesses as well as the leading decorative paints business with its brand Suvinil in Brazil.

BASF’s Coatings division develops, produces and markets innovative automotive coatings, automotive refinishes and industrial coatings as well as decorative paints. We operate sites in Europe, Asia Pacific, North America and South America. Within this network, we collaborate closely with our customers all over the world. In 2014, the Coatings division achieved global sales of about €3 billion.