Akzo Nobel: Blackstone and Others Compete for Indian Business
Deal News | Feb 17, 2025 | EIN
The acquisition race for the India business of Akzo Nobel NV, a Dutch multinational paint company, has intensified with the entry of Blackstone and three other US-based PE firms, namely Warburg Pincus, Carlyle Group, and CVC Capital Partners. These firms are interested in both the India and entire South Asia operations of Akzo Nobel, which includes markets in Pakistan, Nepal, and Sri Lanka. Paint industry rivals such as JSW Paints, in partnership with PE firm TPG, and Indigo Paints, along with new entrant Pidilite, are also competing for the stake, while prominent players like Aditya Birla Group's Birla Opus and Asian Paints have opted out due to potential regulatory issues. Akzo Nobel India is exploring strategic options, including the sale of its powder coatings business and the acquisition of decorative paints intellectual property, following a strategic review announced last October. The revenue from the company's operations in FY24 was Rs 3,961.6 crore with a significant presence in various coatings segments.
Sectors
- Paints and Coatings
- Private Equity
Geography
- India – The article primarily focuses on the acquisition of Akzo Nobel's India business, making this geography central to the discussion.
- South Asia – Akzo Nobel's strategic review includes its South Asia operations, which cover India, Pakistan, Nepal, and Sri Lanka.
- Netherlands – Akzo Nobel NV is a Dutch multinational company, establishing a geographical context for the originating company.
Industry
- Paints and Coatings – This industry is relevant as Akzo Nobel operates in the decorative and industrial paints segments, and the article concerns its India business which is part of the paints and coatings industry.
- Private Equity – The involvement of major PE firms like Blackstone, Warburg Pincus, Carlyle Group, and CVC Capital Partners in the acquisition race reflects active participation from this industry.
Financials
- Rs 3,961.6 crore – Revenue from operations of Akzo Nobel India for FY24.
- USD 8.5 billion – Estimated value of the paints and coatings industry in India.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Akzo Nobel NV | Target company | Company | Dutch multinational paint and coatings company with operations in the Indian and South Asia markets. |
| Blackstone | Bidding company | Company | Global investment firm participating in the race to acquire Akzo Nobel's India business. |
| Warburg Pincus | Bidding company | Company | US-based private equity firm interested in acquiring a stake in Akzo Nobel's India business. |
| Carlyle Group | Bidding company | Company | US-based global investment firm interested in Akzo Nobel's India business. |
| CVC Capital Partners | Bidding company | Company | Jersey-based investment firm eyeing a stake in Akzo Nobel's South Asia operations. |
| JSW Paints | Bidding company | Company | Part of the JSW Group, competing to acquire Akzo Nobel's India business. |
| TPG | Advisor/partner | Company | Partnering with JSW Paints in the acquisition bid for Akzo Nobel's India business. |
| Pidilite Industries | Bidding company | Company | A new player in the Indian paints industry showing interest in acquiring Akzo Nobel's India business. |
| Indigo Paints | Bidding company | Company | Pune-based paint company involved in the acquisition race for Akzo Nobel's India business. |
| Asian Paints | Potential competitor | Company | Dominant player in the Indian paints market, opted out of the race due to regulatory concerns. |
| Aditya Birla Group (Birla Opus) | Potential competitor | Company | Opted out of the race for Akzo Nobel's India business. |
| Akzo Nobel India | Target company subdivision | Company | Indian subdivision of Akzo Nobel NV, involved in decorative and industrial paints. |