PPG to Acquire Paint and Coatings Company Tikkurila

PPG announced it has entered into a definitive agreement to acquire Tikkurila in an all-cash transaction. Under the terms of the agreement, PPG will launch a tender offer to acquire all issued and outstanding shares of Tikkurila. Under the offer, Tikkurila shareholders will receive EUR 25.00 in cash per share held for an aggregate transaction value of approximately EUR 1.1 billion, including assumed debt and cash. The transaction is expected to close in the second quarter of 2021, subject to customary closing conditions.

PPG Chairman and Chief Executive Officer Michael McGarry said, "The PPG and Tikkurila combination is highly complementary both geographically and in terms of decorative brands," and added "We have long admired Tikkurila's rich heritage in building strong decorative brands and product offerings in many Northern and Eastern European countries where PPG has minimal decorative presence.

By combining Tikkurila's high-quality and environmentally friendly decorative products and distribution capabilities in these countries with PPG's respected industrial and protective coatings, we can offer our customers even more paints and coatings options. Additionally, 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."

Tikkurila was founded in 1862 and is headquartered in Vantaa, Finland. As a leading manufacturer and distributor of decorative paints and coatings, the company operates in 11 countries and generates more than 80% of its revenue from Finland, Sweden, Russia, Poland and the Baltic countries.

The company's premium brands include Tikkurila, ALCRO and Beckers. Additionally, Tikkurila's industrial paint business unit also operates in wood and protective coatings end-use segments. The company employs approximately 2,700 people worldwide and reported sales of approximately EUR 564 million in 2019. Tikkurila CEO Elisa Markula said, "Over the past three years, we have achieved a clear turnaround and made significant progress with our strategy. Combining our strengths with PPG, with access to new technologies and resources, can help accelerate our growth even further. We look forward to working with PPG toward a more colorful tomorrow."   PJT Partners LP served as financial advisor to PPG for the transaction and Wachtell, Lipton, Rosen & Katz and DLA Piper Finland Attorneys Ltd served as legal advisors to PPG.