PPG announced that it has entered into a definitive agreement to acquire Tikkurila in an all-cash transaction.
Under the terms of the agreement, PPG will commence a tender offer to acquire all of the issued and outstanding stock of Tikkurila.
Pursuant to the offer, Tikkurila shareholders will receive €25.00 in cash for each share of Tikkurila stock they own, for a total transaction value of approximately €1.1 billion, including the assumption of debt and cash. The transaction is expected to close in the second quarter of 2021, subject to customary closing conditions.
"The combination of PPG and Tikkurila is extremely complementary, both geographically and from a decorative brand perspective," said Michael McGarry, PPG chairman and Chief Executive Officer. "We have long admired Tikkurila's rich history of establishing very strong decorative brands and product offerings in several northern and eastern European countries where PPG has minimal decorative presence. We will be able to provide customers with even more paint and coatings options by bringing together Tikkurila's high-quality and environmentally friendly decorative products and distribution capabilities in these countries with PPG's well-respected industrial and protective coatings. In addition, the combination will provide new cross-selling opportunities, growth opportunities for employees, and product solutions for new segments and customers. We look forward to welcoming the Tikkurila team to PPG and working with them to drive future growth".
About Tikkurila
Headquartered in Vantaa, Finland, since 1862, Tikkurila produces and distributes decorative and industrial paint and coatings. The company has operations in 11 countries, employing approximately 2,700 people globally. More than 80% of its revenue coming from Finland, Sweden, Russia, Poland, and the Baltic states. Its brands include Tikkurila, ALCRO, and Beckers.
"During the past three years, we have made a clear turnaround and significant progress with our strategy. Joining forces with PPG can help us further accelerate our development with access to new technologies and resources. We look forward to working together with PPG for an even more colourful tomorrow," said Elisa Markula, CEO of Tikkurila.
PJT Partners LP served as PPG's financial advisor for the transaction, and Wachtell, Lipton, Rosen & Katz and DLA Piper Finland Attorneys Ltd served as PPG's legal advisors.