Canada's bi-monthly tabloid trade magazine for industrial finishing (paint, powder coating, wood finishing, anodizing, PVD and plating), & paint and coating manufacturing.
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PPG to acquire AkzoNobel North American architectural coatings business
PPG Industries has announced that it has reached a definitive agreement to acquire the North American architectural coatings business of AkzoNobel, N.V., Amsterdam, in a deal valued at $1.05 billion. The transaction has been approved by the boards of directors of both companies and is expected to close in early second quarter 2013, subject to regulatory approvals.
“This acquisition continues the accelerated pace of our business portfolio transformation through further expansion of our coatings businesses,” said Charles E. Bunch, PPG chairman and CEO. “It is also an attractive way to significantly increase our scale in the North American architectural paint market, which we anticipate will benefit from a prolonged construction market recovery.”
Bunch said the acquired business had 2011 revenues of about $1.5 billion and “notably expands our customer reach in all three major North American architectural paint distribution channels.” The acquisition includes the addition of about 600 AkzoNobel-owned paint stores creating a combined network of about 1,000 company-owned stores serving the North American market. “It also complements PPG's national home center strategy by extending our branded paint product offerings to more than 8,000 retail outlets,” he added, referencing AkzoNobel- and PPG-branded retail paint products, “and finally, it enhances our already strong presence in the independent paint dealer channel.”
The acquisition includes all AkzoNobel North American architectural coatings manufacturing and distribution facilities, paint stores, product lines and employees related to the production, sale and distribution of architectural coatings in the United States, Canada and the Caribbean.
Leading brands included are GLIDDEN, FLOOD, LIQUID NAILS, SICO and CIL. PPG also will license the following brands: DULUX, DEVOE architectural coatings, and SIKKENS architectural wood products.
“We expect to achieve significantly improved net operating earnings of about $160 million for the acquired business over a three-year period, including a $60 million improvement immediately upon closing and a total of $90 million by the end of the first year,” Bunch added.
The $60 million improvement anticipated upon closing includes costs that will not be incurred by PPG relating to defined benefit pension expense, amortization expense relating to prior AkzoNobel acquisitions and various administrative costs that will not transfer to PPG. The expected incremental savings of $30 million by the end of the first year and an additional $70 million by the end of the third year following the acquisition include cost synergies stemming from overlap in administration, distribution and manufacturing, the company said.
“Additionally, and in recognition of our strong cash position, we plan to reinitiate our share repurchase program immediately following the completion of the separation of our commodity chemicals business, which we expect to occur in early 2013,” Bunch said. “We anticipate a base level of spending between $500 million and $750 million for share repurchases during 2013.
“The acquisition of the AkzoNobel North American architectural coatings business and planned share repurchases are both consistent with PPG’s long-standing heritage of growing our earnings and returning additional cash to our shareholders. We will still have an elevated level of cash even when considering these two defined uses of cash, and we expect to continue to pursue further earnings-accretive cash deployment actions during 2013,” Bunch concluded.
AkzoNobel is a leading global paints and coatings company and a major producer of specialty chemicals.
Betting on Canada’s Manufacturing Sector:
FABTECH Canada 2014 Announces Expanded Show as
North America’s Most Reputable Industry Event Returns to Toronto
Decision by North America’s largest metal forming, fabricating, welding and finishing event to invest in Canada a reflection of country’s growth forecast
Toronto, Ontario – November 4, 2013 – The manufacturing industry is abuzz with anticipation following the announcement by FABTECH Canada that the show will be returning to Toronto in 2014, significantly expanded in both size and scope.
“The decision to expand the show is based on the success of the 2012 premiere event, which was the first time the world-renowned FABTECH brand launched a show in Canada,” said Janine Saperson, Show Manager with SME, which is hosting FABTECH Canada 2014 with other industry leaders FMA (The Fabricators & Manufacturers Association, Int’l), AWS (The American Welding Society), PMA (Precision Metalforming Association) and CCAI (Chemical Coaters Association International).
The only event of its kind in this country, FABTECH Canada – to take place from March 18 to 20, 2014, at the newly-renovated Toronto Congress Centre – is a one-stop, all-encompassing venue for the latest technologies and trends in fabricating, welding, metal forming, stamping, coating and finishing. With an unmatched reputation in the industry, FABTECH is the largest event in this sector in North America.
Included in the 2014 Canadian expansion is the addition of key industry partners PMA and CCAI, a larger conference and welding area, and brand new finishing and stamping pavilions, featuring a wide-range of exhibiting companies making a debut at the show along with extensive, interactive educational and networking opportunities.
“In Canada, there is growing demand for the technical expertise and industry insight provided by an event like FABTECH, which is evident by the fact that the exhibitor floor is already 80 percent sold,” Saperson said. “In Ontario alone, there are 1.7 million manufacturing professionals – the largest amount of manufacturing employees of any jurisdiction in both Canada and the US – and the show is geared towards the needs of these employees, from industries such as automotive and energy to transportation and construction, as well as businesses that either produce or rely on equipment and machinery in their day-to-day operations.”
Saperson points to recent reports by Forbes Magazine and the Economist Intelligence Unit, which respectively consider Canada the best place in the world for businesses to grow and the best country in the G-7 in which to do business over the next five years – another major impetus to the FABTECH brand’s decision to expand in Canada.
The Canadian show comes on the heels of the massive FABTECH 2013 taking place in Chicago later this month, drawing 35,000 visitors and 1,500 exhibitors. FABTECH expands its reach in 2014 with shows in Mexico, India and Atlanta after the Canadian event.
"Canada is a key market in the metal forming, fabricating and welding industry and the introduction of a major finishing and coatings component to the Canadian show is a testament to the growth of this sector and the increased need for the latest finishing and coatings solutions and technologies that will benefit businesses in both this country and beyond,” said Anne Goyer, Executive Director of CCAI.
“The success of the FABTECH brand, both in Canada and around the world, is the result of the strong combination of the five partners, each of whom brings a slightly different perspective to the show,” said Mark Hoper, V.P. Expositions of FMA. “Together, we are excited to bring an expanded event to such a key market as Canada in 2014.”
For more information or to register for FABTECH Canada 2014, please visit www.fabtechcanada.com or call 1-888-322-7333 ext. 4447.
CPCA 100th Anniversary, A Success
The Canadian Paint and Coatings Association held its 100th Anniversary Annual Conference in Ottawa, at the Chateau Laurier on October 20-22, 2013.
Kick-off speaker for the business sessions was Dr. Ian Lee, renowned economist, professor and speaker, appearing weekly on CBC’s Power and Politics and other national news shows like CTV’s West Block, various radio newscasts and national conferences.
Monday's business sessions dealt with the industry's successes and challenges throughout the year.
Ashland to increase global prices of HEC
Ashland Specialty Ingredients, a commercial unit of Ashland Inc. is increasing the price of its industrial hydroxyethylcellulose (HEC) product lines globally. Prices will increase by 7 to 10 per cent, depending on grade and region, effective for shipments after July 1, 2014, or as contracts allow. The company announced again that it is increasing the price of its portfolio of hydroxyethylcellulose products 5 per cent globally effective August 1, 2014, or as contracts allow. This price increase is necessary for continued investment to support our customers’ growth.
Ashland Inc. announces price increase for intermediates and specialty
solvents in North America
Ashland Performance Materials, a commercial unit of Ashland Inc., is increasing the price of its portfolio of intermediates and specialty solvents sold in North America effective July 1, 2014, or as contracts allow. Prices for 1, 4 Butanediol (BDO) and its downstream solvent derivatives will increase by 5 cents per pound.
Responding to changing market conditions allows Ashland to continue to provide innovative products and industry-leading support that add value for customers.
Nordson Product Line Expansion
Nordson Corporation introduces its patent-pending Break-Away Cyclone for powder coating applications. The Break-Away Cyclone incorporates a revolutionary design that enables the upper and lower sections of the cyclone to be disconnected and moved apart. Splitting the upper and lower cyclone sections helps make it easier for operators to clean the interior surface with a compressed air wand.
Nordson is also launching a line of new non-electrostatic guns, stainless steel pumps and plural component metering systems for liquid applications. They complement Nordson’s existing portfolio of airless equipment, rotary atomizers, electrostatic spray guns, voltage blocking systems and nozzles, rounding-out a complete line of products for most any liquid coating need. The investment represents the largest liquid product line expansion to date and Nordson’s commitment to the long-term growth of its liquid coatings business.
The newest additions to Nordson’s liquid coating line include:
· Trilogy Non-Electrostatic Spray Guns: Encompass air assist airless, air spray and low volume/low pressure technologies. These guns incorporate the latest in design technology, providing excellent spray quality, the durability to withstand harsh manufacturing environments and ease of handling and maintenance.
· StediFlo Pumps: With pressure ratios from 3:1 to 57:1, StediFlo pumps provide versatility and high performance to meet a wide range of pressure and volume requirements.
· OptiMix Plural Component Metering Systems: High-performance pneumatic and electronic plural-component mixing and proportioning units process both solvent- and water-based paints, and are designed for flexibility and efficiency.
Troy Introduces New Universal Mar & Slip Additive
Troy Corporation introduces the latest addition to its Z-Line of multifunctional, environmentally friendly performance additives: Troysol Z372. Z372 is a high performance universal mar and slip additive that improves the wetting of low surface energy and contaminated substrates, resulting in uniform film coverage. Engineered for solvent, solvent-free, and aqueous systems, Z372 improves resistance properties, gloss, and surface appearance in most systems. Z372 is well-suited for coatings and related products in which surface slip and/or resistance properties, such as block, stain or scrub resistance are required. Like all Troy Z-Line performance additives, Z372 is a zero VOC, HAPS-free, APE-free product formulated with renewable resources.
New from Fischer Technologies
Fischer Technology’s MMS NICKELSCOPE is a multi-measurement system using the Hall Effect test method for non-destructive coating thickness measurement of electroplated nickel coatings on electrically non-conductive or non-ferrous substrates as well as non-ferrous metal coatings (copper, aluminum, lead etc...) on steel. It is also ideal for measuring thick non-ferrous coatings.