Two prominent entities within the coatings industry are poised for a significant transformation, as AkzoNobel and Axalta Coating Systems have unveiled plans to unite. This strategic all-stock merger is designed to establish a formidable global leader in the coatings market, with an estimated valuation of around $25 billion. The combined enterprise will leverage the strengths of both companies, integrating AkzoNobel's diverse array of decorative and performance coatings, including renowned brands like Dulux and International, with Axalta's specialized offerings in refinish, commercial vehicle, and industrial coatings, such as Cromax and Spies Hecker.
This consolidation is projected to yield substantial financial benefits, with anticipated 2024 revenues reaching approximately $17 billion and a free cash flow of about $1.5 billion. The merger is expected to generate approximately $600 million in run-rate cost synergies, with a significant portion of these savings materializing within three years of the deal's completion. Spanning over 160 countries, the unified company will bring together a comprehensive range of coating solutions across various sectors, including industrial, mobility, decorative, marine, and protective applications, aiming to drive innovation, broaden market reach, and optimize operational efficiencies.
The newly formed company will establish its domicile in the Netherlands, with primary headquarters located in both Amsterdam and Philadelphia. Following a brief period of dual listing, it will be solely listed on the New York Stock Exchange. The governance structure will feature a single-tier board, chaired by Rakesh Sachdev, Axalta's current board chair. Greg Poux-Guillaume, the current CEO of AkzoNobel, will assume the role of CEO for the combined entity, while Chris Villavarayan, Axalta's CEO, will serve as Deputy CEO. Shareholders are expected to vote on the merger in mid-2026, with the transaction anticipated to close in late 2026 to early 2027, subject to regulatory approvals. Upon closing, AkzoNobel shareholders will hold approximately 55% ownership, with Axalta shareholders retaining around 45%.
This strategic alliance represents a forward-thinking step towards greater resilience and leadership in the global coatings industry. By combining complementary portfolios, harnessing innovative platforms, and enhancing operational efficiencies, the new entity is well-positioned to meet evolving market demands and deliver sustained value to its stakeholders. The collaborative spirit driving this merger underscores a commitment to progress and excellence, fostering an environment where shared expertise leads to breakthrough solutions and a brighter future for the industry.