PPG has bought Tikkurila, a Nordic paint company, for 1.1 billion euros

PPG announced recently that it has reached a final agreement to acquire Tikkurila (NASDAQ OMX: TIK1V) in an all-cash deal.
terms of the agreement, PPG will initiate an offer to acquire all of Tikkurila's issued and traded shares.
under the offer, Tikkurila's shareholders will receive $25.00 in cash for each of their Tikkurila shares, with a total value of about 1.1 billion pounds, including debt and cash commitments.
the transaction is expected to close in the second quarter of 2021, subject to customary closing conditions.
Under the offer agreement, the offer price on the last trading day of December 17, 2020 was approximately 66.2% higher than the closing price of NASDAQ Helsinki Limited;
Under the agreement, the offeror (PPG) saw great value and potential in Tikkurila and therefore wanted to invest heavily in Tikkurila's technology, infrastructure and personnel, and provide Tkkurila with the right to use PPG's globally diversified coatings and specialty coatings products, on which Tikkurila could build and further deepen its relationships with customers, develop horizontal products and move to other regions.
the offer is completed, the offeror wants to position the company and its various brands as a platform for the offeror to the Nordic and Baltic regions, Russia and other regions.
offeror intends to maintain the company's image, culture and Finnish values, including a commitment to creating sustainable values for all stakeholders, as well as investments in local communities and people.
is expected to maintain the company's corporate offices in Finland and various production, distribution and sales centres in the Nordic region.
addition, the offeror intends to continue to invest in the company's employees and is likely to offer larger positions to many of the company's key executives.
's offeror sees the company's strong distribution capabilities as a platform to significantly grow many of the offeror's traditional products in its protection and marine, paint and light industrial coatings businesses, and to expand the combined business of the company and the offeror in the region.
offer will not have any direct or significant impact on the Company's operations, assets, positions of Employees or places of business.
that the completion of the offer will not have any direct or significant impact on the operations or positions of the Company's management or employees.
of Tykkurila's major shareholders, namely Oras Invest Oy, Varma Mutual Pension Company, Mandatum Life Inc. Company Limited and Kaleva Mutual Inc., together account for approximately 29.34 percent of the Company's shares and voting rights, subject to certain customary conditions and irrevocable acceptance of the offer.
"PPG and Tikkurila are highly complementary, both geographically and from the point of view of decorative brands.
," said Michael McGarry, chairman and chief executive officer of PPG.
"We have long appreciated Tikkurila's rich history of building very strong decorative brands and products in several Nordic and Eastern European countries where PPG decoration is rare.
"We will combine Tikkurila's high-quality eco-friendly decorative products and distribution capabilities in these countries with PPG's highly respected industrial and protective coatings to provide customers with more paint and coating options.
addition, the merger will provide new cross-selling opportunities, growth opportunities for employees, and product solutions for new market segments and customers.
McGarry concluded: "We look forward to welcoming the Tikkurila team to PPG and working with them to drive the future."
founded in 1862 and headquartered in Vantaa, Finland.
is a leading producer and distributor of decorative paints and coatings, operating in 11 countries, with more than 80% of its revenue coming from Finland, Sweden, Russia, Poland and the Baltic states.
high-end brands include Tikkurila, ALCRO and Beckers.
addition, Tikkurila's industrial coatings business is involved in end areas such as wood and protective coatings.
the company employs about 2,700 people worldwide and will have sales of about 564 million euros in 2019.
the past three years, our strategy has made significant changes and significant progress.
with PPG will help us gain access to new technologies and resources to further accelerate our growth.
look forward to working with PPG to create a more colorful tomorrow.
," said Elisa Markula, tikkurila's chief executive.
PJT Partners LP as the financial advisor to PPG, Wachtell Lipton Rosen and Katz and DLA Piper Finland Attorneys Ltd as PPG's legal advisers.
PPG Industries group sales in 2019 were $15.146 billion.
by geographic sales, PPG Europe/Middle East/Africa (EMEA) revenue was $4.549 billion, U.S. and Canada revenue was $6.475 billion, Latin America revenue was $1.580 billion, and Asia Pacific revenue was US$2.542 billion, by business segment, construction coatings business sales accounted for 34%, general industrial coatings business sales accounted for 19%, automotive OEM coatings / automotive repair paint sales accounted for 30%, protective and marine coatings / packaging coatings / aviation coatings sales accounted for 17%.
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