AkzoNobel announced the intended sale of its global Paper Chemicals business to Kemira for €153 million. Paper Chemicals is part of the company's Pulp and Performance Chemicals business and generated annual revenue of €243 million in 2013.
The intended sale of Paper Chemicals follows a strategic review of the business' fit within AkzoNobel's portfolio. Paper Chemicals is part of the Pulp and Performance business within AkzoNobel's Specialty Chemicals business area. It does not include AkzoNobel's Pulp Bleaching business, nor its Colloidal Silica business. For the paper related part of Colloidal Silica, the parties will enter into a distribution arrangement. The Pulp Bleaching business and the Eka name remain core for AkzoNobel's Specialty Chemicals business.
The transaction is expected to be completed in approximately six months, subject to regular consultation with employee representatives and satisfactory closing conditions, such as receipt of required regulatory clearance. AkzoNobel will continue as toll manufacturer of certain products and will enter into an agreement with regards to the colloidal silica supply to Kemira.