Akzo Nobel's India Business Attracts Global PE Interest
Deal News | Feb 17, 2025 | EIN
The race to acquire a significant stake in Akzo Nobel’s India business is heating up, with major private equity firms including Blackstone, Carlyle Group, Warburg Pincus, and CVC Capital Partners entering the fray. JSW Paints, in collaboration with TPG, and Pidilite Industries are showing interest, while major local players like Aditya Birla Group and Asian Paints opt out. The strategic review by Akzo Nobel of its South Asia business, announced in late 2023, indicates potential sales or restructuring. The multinational is exploring various strategic options, including partnerships and divestments, to focus on its core areas. Akzo’s Indian operations span decorative to industrial coatings, contributing significantly to the market valued at USD 8.5 billion.
Sectors
- Paint and Coatings
- Private Equity
Geography
- India – The primary focus of the acquisition is on the India business of Akzo Nobel.
- South Asia – Akzo Nobel is reviewing its South Asia operations, which include India, Pakistan, Nepal, and Sri Lanka.
Industry
- Paint and Coatings – The article discusses Akzo Nobel's operations in the paint and coatings industry, including its decorative and industrial segments.
- Private Equity – The involvement of multiple private equity firms such as Blackstone, Warburg Pincus, and Carlyle Group in the bidding process is a major theme of the article.
Financials
- Rs 3,961.6 crore – Revenue from operations of Akzo Nobel India in FY24.
- USD 8.5 billion – Estimated value of the paint and coatings industry in India.
- 74.76% – Stake held by Akzo Nobel in its India business that is up for acquisition.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Akzo Nobel NV | Target Company | Company | A Dutch multinational paint company exploring strategic options for its South Asia operations. |
| Blackstone | Bidding Company | Company | A global investment firm showing interest in acquiring Akzo Nobel's India business. |
| Warburg Pincus | Bidding Company | Company | A private equity firm interested in acquiring a stake in Akzo Nobel's India business. |
| Carlyle Group | Bidding Company | Company | A global investment firm in the race to acquire Akzo Nobel's India business. |
| CVC Capital Partners | Bidding Company | Company | A Jersey-based private equity firm interested in Akzo Nobel's India and South Asia business. |
| JSW Paints | Bidding Company | Company | Part of JSW Group, collaborating with TPG to acquire a stake in Akzo Nobel's India business. |
| Pidilite Industries | Bidding Company | Company | An Indian company participating in the bid for Akzo Nobel's India business. |
| JSW Group | Other Company | Company | A diversified conglomerate leading JSW Paints, interested in acquiring Akzo Nobel's India business. |
| Akzo Nobel India | Target Company | Company | A subsidiary of Akzo Nobel NV that manages the company's operations in India. |