AkzoNobel and Axalta agree on all-stock merger to create $25B global coatings powerhouse

AkzoNobel and Axalta have agreed to merge in an all-stock deal that will create a global coatings giant valued at $25 billion, including debt, in one of the most significant tie-ups the industry has seen in years.

Announced on Tuesday, the plan will combine the Dutch paint maker and the Philadelphia-based automotive and industrial coatings supplier into a single, publicly listed group.

Under the agreement, shareholders of Netherlands-based AkzoNobel will own 55% of the new company, while those of Axalta will hold the remaining 45%, the companies said.

The merged entity will seek a single listing on the New York Stock Exchange and operate with dual headquarters in Amsterdam and Philadelphia.

Combined revenues to reach $17bn with strong cash flow

The new company is projected to generate around $17 billion in annual revenue based on 2024 performance.

The companies said the combination will build on approximately $1.5 billion in pro forma adjusted free cash flow and create a business with the scale and financial strength to accelerate investment and growth.

Both firms stressed that the merger positions the combined group to deliver “substantial growth and shareholder value creation,” supported by a portfolio that spans automotive, industrial, commercial and decorative coatings.

Greg Poux-Guillaume, AkzoNobel’s Chief Executive Officer and Chairman of its Board of Management, said the deal marks a “new chapter” for the company.

“This merger will allow us to accelerate our growth ambitions by bringing together highly complementary technologies, expertise and passionate people. I’m excited to lead our talented teams in bringing the best of both companies to our customers and shareholders,” he said.

Axalta CEO and President Chris Villavarayan said the tie-up gives his company the scale and competitive advantage needed in a rapidly evolving industry.

“This combination with AkzoNobel enables us to grow with a sharper competitive edge and new avenues for expansion,” he said.

Synergy gains and global footprint central to growth plans

Management expects the merger to deliver approximately $600 million in pre-tax run-rate synergies, with 90% of these efficiencies realised within the first three years after closing.

The savings will be driven by operational integration, procurement efficiencies and streamlined manufacturing.

The combined company will have an extensive global footprint, operating 173 manufacturing sites and 91 research and development facilities worldwide.

Executives say this network will allow the merged group to deliver global capabilities while staying responsive to local market needs.

Including projected synergies, the merged entity aims to reach adjusted EBITDA of $3.3 billion, with margins approaching 20% and strong cash generation.

Net leverage is expected to fall within a targeted range of 2.0x to 2.5x, supporting investment-grade credit ratings and enabling consistent capital returns through regular dividends.

Axalta, which specialises in liquid and powder coatings used in automotive refinishing, industrial equipment and commercial applications, has grown steadily since its 2014 listing following its sale by DuPont to the Carlyle Group.