The merger brings together two leading companies in the coatings industry with complementary brand portfolios, aiming to enhance customer value, shareholder returns and operational efficiency. The combined business will have a strong financial profile, industry-leading innovation capabilities, and a global footprint spanning more than 160 countries.
AkzoNobel and Axalta have announced plans to combine in an all-stock merger of equals, creating a global coatings powerhouse with an enterprise value of approximately $25 billion. The new entity is expected to generate around $17 billion in annual revenue.
The deal is projected to deliver around $600 million in run-rate cost synergies, with 90% expected to be realised within three years. The combined company will have pro forma adjusted free cash flow of $1.5 billion and adjusted EBITDA of $3.3 billion, supporting strategic priorities and capital allocation.
Greg Poux-Guillaume, CEO of AkzoNobel, will serve as CEO of the combined company, while Chris Villavarayan, CEO of Axalta, will become Deputy CEO. Rakesh Sachdev, Chair of the Axalta Board, will lead the board, with Ben Noteboom, Chair of the AkzoNobel Supervisory Board, serving as Vice-Chair.
The company will maintain dual headquarters in Amsterdam and Philadelphia and be domiciled in the Netherlands, with a future listing solely on the NYSE. The board will consist of 11 directors, including four from each company and three independents.
The merger is expected to deliver:
- Diversified portfolio: Combining AkzoNobel’s and Axalta’s brands will provide a full spectrum of coatings solutions across Powder, Aerospace, Refinish, Mobility, Marine, Protective, Industrial and Decorative Paints, spanning around 100 recognised brands.
- Global scale: The combined company will operate 173 manufacturing sites and 91 R&D facilities worldwide, enhancing local access and customer support.
- Innovation capabilities: Approximately $400 million annual R&D spend, 4,200 research staff, and 3,200 granted or pending patents will create an innovative platform across end markets.
- Cost synergies: Pre-tax run-rate savings of $600 million through procurement, SG&A efficiencies, footprint optimisation, and improved supply chain management.
- Financial strength: Strong adjusted EBITDA margins approaching 20%, significant cash flow, and targeted net leverage of 2.0–2.5x, supporting dividend payments and investment-grade credit rating maintenance.
“We’re excited to enter a new chapter in our long and proud history as a leader in the paints and coatings industry. This merger will allow us to accelerate our growth ambitions by bringing together highly complementary technologies, expertise and passionate people to unlock our full combined potential. I’m excited to lead our talented teams in bringing the best of both companies to our customers and shareholders, delivering outstanding value to both,” has stated Greg Poux-Guillaume, CEO of AkzoNobel.
“This combination represents a compelling opportunity. It’s a great value proposition for all our stakeholders, both in the Netherlands – where we maintain our domicile – and internationally, including our shareholders, customers and employees. It will create a world leader in coatings and is a significant step that will drive sustainable growth and allow us to better serve our customers. By uniting two world class organizations, we’re creating a strong platform for the future, built on a solid foundation of shared values and heritage,” has commented Ben Noteboom, Chair of the Supervisory Board of AkzoNobel.
“We are pleased to enter into this transaction with AkzoNobel and join our best-in-class platforms to enhance innovation, develop new capabilities and further strengthen customer relationships. As our industry continues to grow and evolve, this combination with AkzoNobel enables us to do the same, with a sharper competitive edge and new avenues and opportunities for growth. Together, AkzoNobel and Axalta are positioned to establish a profitable and sustainable path forward as a leader in the coatings industry. Like AkzoNobel, we value our people as our greatest asset, and we are excited to unite our rich, innovation-focused cultures,” has added Chris Villavarayan, CEO of Axalta.
“The Axalta Board is confident that this combination with AkzoNobel will create significant value for our shareholders as we move ahead. Led by an experienced management team with a track record of operational efficiency and excellence, we expect the meaningful synergy opportunities and enhanced financial profile of the combined company will drive substantial value creation. We look forward to joining Axalta’s and AkzoNobel’s strengths to create new opportunities across our global stakeholder base,” has concluded Rakesh Sachdev, Chair of the Axalta Board
Axalta shareholders will receive 0.6539 shares of AkzoNobel stock for each Axalta share. AkzoNobel shareholders will own 55% and Axalta shareholders 45% of the combined company on a pro forma basis. A special cash dividend of €2.5 billion will be paid to AkzoNobel shareholders.
The merger is expected to close between late 2026 and early 2027, pending shareholder approvals, regulatory clearances, and other customary conditions. Both companies have suspended share buyback programmes, while regular dividends will continue until closing.