AkzoNobel N.V. (Amsterdam, the Netherlands; www.akzonobel.com) outlined a new strategy to accelerate growth and value creation with two focused, high-performing businesses – Paints and Coatings and Specialty Chemicals – which will lead to a step change in value creation for shareholders and all stakeholders.
The logical next phase of creating two separate companies builds on the strong financial and operational foundation developed in recent years. It will generate superior, faster and more certain value creation than the alternatives and with substantially fewer risks, uncertainties and social costs.
The separation of Specialty Chemicals is to take place within 12 months.
AkzoNobel expects the strategy to continue accelerating sustainable growth and profitability though €150 million annual savings resulting from ongoing continuous improvement programs in Paints and Coatings
An additional €50 million expected cost savings is expected related to the separation of Specialty Chemicals.
The company also announced an investment of €1 billion in research and development by 2020 to maintain focus on innovation and new product development.
Ton Büchner, CEO of AkzoNobel, said: “Our commitment to substantial shareholder returns reinforces our belief that the plan we are outlining today will create a step change in value creation, generating significant shareholder value in the short, medium and long term. It will be delivered at pace, with a clear timeline and is in the best interest of all stakeholders. During recent years, we have consistently delivered on our commitments to improve profitability and growth, while building momentum within our company. We have world class teams and a solid financial and operational foundation. The industry-leading performance and outlook of our Specialty Chemicals business gives us the confidence to return proceeds to shareholders in advance of the separation. In addition, we see extensive growth momentum in our Paints and Coatings business, which we expect to keep growing faster than market rates, allowing us to improve our long-term financial guidance. Now is the right time to create two focused, high-performing businesses. This strategy will create substantial value for shareholders with significant less risks and uncertainties compared to alternatives.”