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PPG Closes Acquisition of Nordic Paint and Coatings Firm Tikkurila
Friday 11 June 2021

US-based paint and coatings company PPG (NYSE: PPG) has completed its acquisition of all of the shares of Finland-based decorative paint and coatings producer Tikkurila (NASDAQ OMX: TIK1V), the company said.

Tikkurila shareholders received EUR 34.00 in cash for each of the 38,711,646 m shares of Tikkurila tendered.

Together with the shares it previously acquired, PPG now controls 97.1% of Tikkurila's issued and outstanding shares. The remaining 2.9% will be acquired through a squeeze out process, which will be initiated promptly.


Under an improved offer announced in February, Tikkurila shareholders received EUR 34.00 in cash for each share of Tikkurila stock they own, for a total transaction value of approximately EUR 1.52bn, including the assumption of debt and cash.

The improved offer follows Tikkurila's receipt of a competing offer from AkzoNobel (AMS: AKZA) on January 28, 2021.

Tikkurila confirmed it held discussions with AkzoNobel early in 4Q20, prior to PPG's December 2020 recommended offer to acquire Tikkurila.

Based on PPG's improved offer, certain major shareholders of Tikkurila, representing approximately 29.34% ownership in the aggregate, have unconditionally agreed to sell their shares to PPG subject to applicable regulatory approvals.

Last December, PPG entered into a definitive agreement to acquire Tikkurila in an all-cash transaction.

Under the original offer, Tikkurila shareholders would receive EUR 25.00 in cash for each share of Tikkurila stock they own, for a total transaction value of approximately EUR 1.1bn, including the assumption of debt and cash.

Tikkurila was established in 1862, and is headquartered in Vantaa, Finland.

The company is a producer and distributor of decorative paint and coatings with operations in 11 countries and more than 80% of its revenue coming from Finland, Sweden, Russia, Poland, and the Baltic states.

Its brands include Tikkurila, ALCRO, and Beckers.

PPG said that the EC approval is an important milestone in the process and further enhances the certainty of completing the transaction.

The transaction remains subject to additional customary conditions to completion and other regulatory approvals. The tender offer is currently scheduled to expire on March 15, 2021. The company will provide additional updates at that time.

At PPG (NYSE: PPG), we work every day to develop and deliver the paints, coatings and materials that our customers have trusted for more than 135 years.

Through dedication and creativity, we solve our customers' biggest challenges, collaborating closely to find the right path forward. With headquarters in Pittsburgh, we operate and innovate in more than 70 countries and reported net sales of USD 13.8bn in 2020.

Tikkurila was established in 1862, and is headquartered in Vantaa, Finland. Tikkurila operates in eleven countries and its 2,700 dedicated professionals share the joy of building a vivid future through surfaces that make a difference.

The company is a leading producer and distributor of decorative paint and coatings with more than 80% of its revenue coming from Finland, Sweden, Russia, Poland, and the Baltic states. In 2020, revenue totaled EUR 582 m. The company is listed on NASDAQ Helsinki.
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Date Published: 11/06/2021

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