AkzoNobel and Axalta Merge to Create a Leading Global Coatings Company
AMSTERDAM and PHILADELPHIA, Nov. 18, 2025 – In a landmark move for the coatings industry, AkzoNobel (AKZA; AKZOY) and Axalta Coating Systems (NYSE:AXTA) have announced an all-stock merger, forming a combined entity valued at approximately $25 billion. This strategic merger unites two of the world’s most respected coatings companies, leveraging complementary portfolios to enhance customer solutions, drive innovation, and maximize shareholder value.
The newly formed company will operate globally, with dual headquarters in Amsterdam and Philadelphia, and will be listed on the New York Stock Exchange (NYSE) following a transition from dual listings. With revenues projected at $17 billion and a pro forma Adjusted Free Cash Flow of $1.5 billion, the merger positions the company for long-term financial strength and sustainable growth.
Expanding Global Reach and Market Presence
By combining AkzoNobel’s and Axalta’s extensive brand portfolios, the merger creates a full-spectrum coatings provider across multiple sectors including industrial coatings, decorative paints, aerospace, automotive refinish, marine, and protective coatings.
The combined footprint spans 173 manufacturing sites and 91 R&D facilities worldwide, allowing the company to bring global capabilities to local markets. This expanded presence will enhance customer relationships through deeper distribution channels and localized product support, strengthening the company’s position in both mature and emerging markets.
Driving Innovation Through Combined Expertise
Innovation is at the heart of this merger. The combined R&D capabilities include 4,200 scientists and engineers working across 91 facilities, managing approximately 3,200 granted or pending patents, and an annual R&D budget of $400 million.
By merging Axalta’s automotive refinish and industrial coatings expertise with AkzoNobel’s powder coatings, aerospace, and decorative paints technologies, the company aims to deliver advanced, environmentally conscious coatings solutions. Sharing best practices between two world-class research platforms is expected to accelerate product development and market responsiveness, offering customers cutting-edge, high-value solutions.
Financial Strength and Synergy Opportunities
The merger is expected to generate $600 million in run-rate synergies, primarily through procurement efficiencies, SG&A optimization, and supply chain improvements, with 90% achievable within the first three years. The combined company will maintain strong EBITDA margins (~20%) and robust cash flow generation, providing the flexibility to invest in growth, R&D, and shareholder returns.
A special cash dividend of €2.5 billion will be paid to AkzoNobel shareholders, and on a pro forma basis, AkzoNobel shareholders will own 55% and Axalta shareholders 45% of the new company, reinforcing a balanced ownership structure.
Leadership, Governance, and Corporate Structure
The newly merged entity will be led by a one-tier Board, chaired by Rakesh Sachdev, with Greg Poux-Guillaume as CEO and Chris Villavarayan as Deputy CEO. The Board will consist of 11 directors, including independent and executive members from both companies.
This leadership team combines decades of experience in operational excellence, strategic growth, and innovation management. The corporate structure ensures robust governance while maintaining a strong commitment to shareholder value creation and sustainable growth.
Strategic Benefits for Customers and Stakeholders
Diversified Brand Portfolio: Around 100 leading brands across all major coatings sectors, offering a comprehensive solution set.
Enhanced Market Access: A broader geographic footprint and local presence strengthen distribution and service capabilities.
Innovation Leadership: Accelerated R&D enables faster development of environmentally friendly and technologically advanced coatings.
Sustainable Growth: Strong financial metrics, cash flow, and targeted synergies ensure long-term shareholder and stakeholder value.
Looking Forward