AkzoNobel acquires Colourland Paints: Freedonia Group Analysis

AkzoNobel had been quiet on the acquisition front in recent years

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Nov 05, 2018, 15:31 ET

CLEVELAND, Nov. 5, 2018 /PRNewswire/ -- On November 1, AkzoNobel announced that they had acquired Colourland Paints, a leading producer of decorative paints in Malaysia. The purchase of Colourland Paints, which had annual sales of around $20 million, will bolster AkzoNobel's market position in Malaysia and the Southeast Asia region, where it was already a market leader.

The market for architectural paint in Malaysia has been booming in recent years. According to Freedonia Group research, growth in the country was just under 9% per year over the last decade. While this growth is expected to slow going forward, architectural paint demand in Malaysia will reach over 300,000 metric tons in 2022.

The architectural paint industry has experienced a great deal of consolidation lately, including both blockbuster deals (such as Sherwin-Williams' purchase of Valspar in 2017) and minor ones. However, relative to other decorative paint market leaders, "AkzoNobel had been quiet on the acquisition front in recent years," according to Freedonia Group analyst Kent Furst. The company had instead focused on strengthening their industrial coatings business, while themselves fending off takeover bids from rival PPG, explains Furst.

This has changed in the past few months, as AkzoNobel has begun to make moves to boost the decorative business. The Colourland Paints acquisition was the third in a series of purchases, beginning with Spain's Xylazel in September and Romanian market leader Fabryo in October. The three moves add nearly $100 million in decorative paint sales to AkzoNobel's portfolio.

For more information regarding global paint trends visit the Global Architectural Paint study page: https://www.freedoniagroup.com/industry-study/global-architectural-paint-by-market-formulation-and-end-user-13th-edition-3598.htm

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SOURCE The Freedonia Group