Mergers and Acquisitions: A Vital Strategy followed by the Industrial Coatings Business in 2016

2016 has been the year of mergers and acquisitions in the industrial coatings market. The global market for industrial coating is fairly consolidated due to the merger and acquisition activities taking place between major players like AkzoNobel N.V. taking over the industrial coatings operation of BASF SE and more. Furthermore, Axalta coatings system which is a leading supplier of liquid and powder coatings has recently entered into a definitive agreement with The Valspar Corporation and The Sherwin Williams Company to acquire the assets related to Valspar’s North American industrial wood coatings business for $420 million. Axalta Coatings System is one of the major players in the industrial coatings market with wide range of product offerings dealing in various industries. Its acquisition of Valspar’s industrial wood coatings business will enable it to expand in the U.S, which is a big market for industrial coatings.

Recently, AkzoNobel completed the $520 million acquisition of BASF’s industrial coating division. As part of the agreement, AkzoNobel will take over two of BASF’s coating plants that include one in Deesside in the UK and other in Vanderbijlpark, South Africa. The Deesside unit will reinforce the company’s presence in the UK where it has a major coatings plant at Ashington, northeast England. Also, on July 10th 2017, the company announced about the acquisition of UK-based Flexcrete Technologies Ltd and an agreement to acquire French manufacturer Disa Technology (Disatech). The agreements will further support AkzoNobel’s global leadership position in supplying innovative industrial coatings as well as aerospace and automotive coatings. The acquisitions will establish AkzoNobel as one of the largest player in industrial coatings market. 2016 has been a year of mega M&A in the coatings business

There are a number of regional highlights to reflect upon, however, with the US, UK and Asia-Pacific markets are the subject of particular focus. Axalta, a major player of the industrial coatings business took its move to acquire U.K. based Spencer Coatings in May. This acquisition will help Axalta to expand its regional presence in the United Kingdom. Apart from major players, smaller ones also followed the similar trend. Azz Inc., a global provider of welding solutions, specialty electrical equipment and highly engineered services recently announced about the acquisition of the assets of Enhanced Powder Coating Ltd. Key merger & acquisition was also witnessed in various coatings markets this year. On a similar note, 2017 is also anticipated to be a similarly game-changing year for the global coatings business.

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