AkzoNobel To Sell Paper Chemicals Unit To Kemira For €153 Million - Quick Fact

(RTTNews) - Dutch paint maker AkzoNobel NV (AKZOY.PK, AKZOY) Tuesday announced the intended sale of its global Paper Chemicals business to Kemira for 153 million euros.

Paper Chemicals, which is part of the Pulp and Performance business within AkzoNobel's Specialty Chemicals business area, generated annual revenue of 243 million euros in 2013.

It does not include AkzoNobel's Pulp Bleaching business, nor its Colloidal Silica business. For the paper related part of Colloidal Silica, the parties would reach a distribution arrangement. The Pulp Bleaching business and the Eka name remain core for AkzoNobel's Specialty Chemicals business.

Werner Fuhrmann, AkzoNobel's Executive Committee member responsible for Specialty Chemicals, noted: "We have concluded that our Paper Chemicals business will have a better fit with another owner, allowing us to focus on our strong chemical platforms. The Pulp and Performance Chemicals business will continue to focus on global leadership positions in pulp bleaching, colloidal silica and expandable microspheres."

The transaction is likely to be completed in about six months, and AkzoNobel would continue as toll manufacturer of certain products and would enter into an agreement with regards to the colloidal silica supply to Kemira.