The AkzoNobel paint plant in Huron will be coming under new ownership soon.
PPG Industries of Pittsburgh announced Friday that it will acquire AkzoNobel's North American paints business for $1.05 billion.
The sale of Decorative Paints North America includes the AkzoNobel paint plant in Huron, which employs about 200 people. The paint business produces a number of paint brands, including Glidden.
The boards of directors of both companies have approved the sale, PPG said in a news release announcing the acquisition. If regulators approve, the deal is expected to close early in the second quarter of 2013.
"This acquisition continues the accelerated pace of our business portfolio transformation through further expansion of our coatings businesses," said Charles E. Bunch, PPG chairman and CEO. "It is also an attractive way to significantly increase our scale in the North American architectural paint market, which we anticipate will benefit from a prolonged construction market recovery."
The sale includes about 600 AkzoNobel-owned paint stores.
AkzoNobel's paint brands include Glidden, Flood, Liquid Nails, Sico, and Cil. In addition, PPG will license Dulux paints, Devoe architectural coatings and Sikkens architectural wood products.
In 2011, AkzoNobel's North American paint business had revenues of $1.5 billion, about 7 percent of AkzoNobel's total 2011 revenue, AkzoNobel said in a news release.
"Over the past four years the team has done a great job in turning the North American Decorative Paints business around," said Tom Buechner, CEO of AkzoNobel. "We are convinced that Decorative Paints can get better returns from our leading positions in Europe and high growth markets. I am pleased that we have found a respected company to take over the business. The agreement is good outcome for all stakeholders."
PPG employs more than 38,000 people around the world, according to a company fact sheet. It is a global supplier of paints, coatings, chemicals, optical products, specialty materials, glass and fiber glass, the company says.