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JSW Paints to buy Akzo Nobel India for $1 billion

The transaction is based on a total enterprise value of approximately €1.4 billion, representing earnings multiple (EV-EBITDA) of 22 times, and includes Akzo Nobel’s liquid paints and coatings business in India

JSW Paints Ltd is a part of the Sajjan Jindal group. (Photo: jswpaints.in)

JSW Paints Ltd, a company under the Sajjan Jindal-led JSW Group, has signed definitive agreements to acquire up to 74.76 per cent stake in Akzo Nobel India Ltd (ANIL) from the Netherlands-based Akzo Nobel N.V. and its affiliates. The transaction, under the terms of the share purchase agreement, is valued at up to Rs 8,986 crore (approximately $1.04 billion).

The transaction is based on a total enterprise value of approximately euro 1.4 billion, representing an earnings multiple (EV-EBITDA) of 22 times, and includes Akzo Nobel’s liquid paints and coatings business in India, Akzo Nobel said.

The deal positions JSW Paints as the fourth-largest player in the Indian paint sector, valued at over $10 billion, which is currently dominated by Asian Paints.

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However, the India powder coatings business and International Research Centre, both currently part of ANIL, will be retained by Akzo Nobel under full ownership.

Shares of Akzo Nobel India shot up by 6.96 per cent to Rs 3,414.75 on the exchanges on Friday, valuing the company at Rs 15,550 crore.

“This divestment is a first step in the strategic portfolio review announced in October 2024, aimed at focusing the company’s capital and capabilities on leading positions in key global coatings markets,” Akzo Nobel said. The company, which owns the Dulux brand, has five plants located in various states.

The company reported a revenue of Rs 4,091 crore and a net profit of Rs 428.6 crore for FY25.

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Product Range

In India, the company offers a wide range of products across various segments, including decorative paints, automotive and specialty coatings, powder coatings, industrial coatings and marine & protective coatings.

“The net cash proceeds are expected to be approximately euro 900 million, of which around euro 500 million will be used for deleveraging. Following closing, AkzoNobel intends to launch a euro 400 million share buyback programme,” it said.

Parth Jindal, Managing Director, JSW Paints, said “paints and coatings is one of India’s fastest growing sectors. Together, along with the Akzo Nobel India family – employees, customers and partners – we aspire to build the paint company of the future.”

Akzo Nobel India has been present in India for over 70 years and currently operates in Paints and Coatings Segment. In 2008, the Indian unit became a member of the Akzo Nobel Group. Headquartered in Amsterdam, the parent firm has activities in more than 150 countries.

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Greg Poux-Guillaume, CEO of Akzo Nobel, said: “this transaction is a significant milestone in the execution of our strategy. AkzoNobel India has been a consistently strong performer, and we are proud of the brand and talent that have made it a success.”