Kemira to acquire paper chemicals business from AkzoNobel
Mary Page Bailey
Kemira Oyj (Helsinki, Finland; www.kemira.com) has reached a preliminary agreement to acquire AkzoNobel's global paper chemicals business. The parties will also enter into a distribution agreement for AkzoNobel's colloidal silica business for retention and drainage applications for the paper industry. The closing of the intended transaction is expected in the first quarter of 2015 and is subject to customary closing conditions, including completion of employee consultation proceedings and approvals of competition authorities in certain countries. The Enterprise Value of the transaction for AkzoNobel's paper chemicals business is €153 million.
AkzoNobel's paper chemicals business includes products for retention and sizing, as well as other paper chemicals, including wet strength and coating products. In 2013, revenues of the purchased paper chemicals business were €243 million. Over 50% of the revenues were related to the packaging board grades.