Dulux paint maker AkzoNobel said on Tuesday that it plans to acquire paintmaker Axalta Coating Systems in a deal that will create a combined company with an enterprise value of $25 billion.
AkzoNobel shareholders are expected to own 55% of the new group and Axalta investors 45%, initially dual-listed in Amsterdam and New York before moving to a single NYSE listing, and maintaining dual headquarters in Amsterdam and Philadelphia.
The combined company will be led by current AkzoNobel chief executive Greg Poux-Guillaume as CEO.
“This merger will allow us to accelerate our growth ambitions by bringing together highly complementary technologies,” AkzoNobel CEO Greg Poux-Guillaume said in a statement.
The new company expects annual revenues of $17 billion, an annual adjusted core earnings (EBITDA) of $3.3 billion, and $1.5 billion in adjusted free cash flow.
It expects to deliver annual cost savings of $600 million, 90% of which are expected within the first three years following the close of the transaction.
Completion of the merger is expected to close late 2026 to early 2027.