Akzo Nobel to acquire Ferro Powder Coatings in Americas and Asia Pacific

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Akzo Nobel to acquire Ferro Powder Coatings in Americas and Asia Pacific Arnhem, the Netherlands, August 5, 2002 - Akzo Nobel Coatings has signed a contract with Ferro Corporation to acquire its powder coatings businesses in the Americas and Asia Pacific. The value of the transaction is USD 73 million free of cash and debt. The Cleveland, Ohio - based company posted total sales for its powder coatings businesses in the Americas and Asia Pacific of USD 100 million in 2001. The acquisition will be subject to approval by competition authorities in the United States and additional approvals will be sought as and where appropriate. "This deal resolves a major strategic gap in our global powder coatings business," said Rudy van der Meer, Member of the Akzo Nobel Board of Management responsible for Coatings. "We are already one of the world's market and technology leaders in this important growth sector of coatings, with strong positions in many countries, but our existing U.S. powder operations are relatively small. "This acquisition not only gives us a top 3 position in what is the single largest powder market in the world, but it also gives us a stronger platform for servicing our global customers. Furthermore, it complements our existing business in Mexico and builds on our existing strengths in Korea and China." Fritz Fröhlich, Akzo Nobel's Chief Financial Officer, said: "The funds needed for this transaction were included in our 2002 plan and the acquisition does not interfere with our commitment to further reduce our debt by at least EUR 200 million by year-end." Bill McPherson, General Manager of the business unit Powder Coatings added: "This acquisition is an excellent strategic fit with our existing businesses. Ferro is a leading supplier to a wide range of industrial sectors, including the U.S. automotive and appliance powder markets where it has preferred supplier positions and approvals with the top users of powder coatings in both sectors." Under the terms of the deal Akzo Nobel will take over all of Ferro's powder operations in the United States - including factories in Nashville, Tennessee and Brecksville, Ohio, and development & management facilities in Cleveland, Ohio. In Asia Pacific, the deal includes the purchase of Ferro's powder coatings operations in Ningbo, China, as well as its joint venture interests in Ulsan, South Korea. In total 540 people will transfer to Akzo Nobel. - - - Note for the editor Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings and chemicals. Consolidated sales for 2001 totaled EUR 14 billion. The Company currently employs over 67,000 people in 80 countries. Financial results for the third quarter will be published on October 23, 2002. Akzo Nobel manufactures thermosetting powder coatings at over 20 facilities around the world. The business operates under the common global business brand of Interpon® Powder Coatings. The Interpon product brand is marketed to architectural metal, automotive components, domestic appliance, as well as to a range of industrial market sectors, key amongst which are metal furniture and IT equipment. The Resicoat® product brand is marketed to the so-called "functional" markets, which include anti-corrosion protection for pipeline, valves and fittings, reinforcing steel (rebar) as well as electrical insulation for a range of electrical and electronic component industries. Internet: www.akzonobel.com www.interpon.com www.resicoat.com Not for publication - for more information please contact: Akzo Nobel N.V. Marc Michelsen, Corporate Communications, tel. +31 26 366 4343 Derek Welch, Strategy & Planning Coatings, tel. +44 783 184 3786 ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2002/08/05/20020805BIT00010/wkr0001.doc http://www.waymaker.net/bitonline/2002/08/05/20020805BIT00010/wkr0002.pdf