Akzo Nobel to divest mirror coatings business

Akzo Nobel to divest mirror coatings business Arnhem, the Netherlands, April 27, 2004 - Akzo Nobel today announced its intention to divest the Company's mirror coatings business to the Italian Group Fenzi. Akzo Nobel expects the transaction to be concluded in the second quarter of 2004. The mirror coatings business, which is based in Vilvoorde, Belgium, produces paints that are applied to the backs of mirrors to protect the silver lining which makes up the reflective surface. The business had sales of over EUR 7 million in 2003. "Within Coatings we have been moving towards a more consistent portfolio of core global businesses over the last couple of years," explained Rudy van der Meer, Member of Akzo Nobel's Board of Management responsible for Coatings. "Although mirror coatings has performed admirably and continues to grow, it is no longer considered to be part of our strategic framework. We have therefore decided to find an owner who is committed to growing the business, thereby opening up new opportunities in the market." As part of the deal, Fenzi will also continue to toll produce coatings for building components - used in concrete roof tile protection - for Akzo Nobel. "Acquiring Akzo Nobel's mirror coatings business means that we will be able to tap into the considerable expertise and proven track record which has been built up by the company over the years," said Fenzi CEO, Alessandro Fenzi. Group Fenzi is one of the worldwide leaders in the field of specialty chemicals for glass processing and is a global leader in the manufacturing of mirror coatings, sealants for insulating glass, and ceramic and decorative paints for glass. Employee unions and representative bodies were informed about the intention to divest and the consultation procedures will continue where applicable. The transaction will be subject to applicable merger control procedures. A total of 58 employees will transfer to the Group Fenzi. In addition to the Fenzi deal, Akzo Nobel is also in the final stages of divesting its Vilvoorde general industrial coatings activities, as well as planning to relocate the site's coil coatings activities to another Akzo Nobel plant in Europe. - - - Note for the editor Akzo Nobel, based in the Netherlands, serves customers throughout the world with healthcare products, coatings and chemicals. Consolidated sales for 2003 totaled EUR 13 billion. The Company currently employs approximately 64,300 people in more than 80 countries. The financial results for the second quarter will be published on July 19, 2004. Fenzi SpA is a world leader in the field of specialty chemicals for glass processing. Production includes anti-corrosive paints for mirror backing, ceramic and decorative paints for glass; polysulphide, butyl and hot-melt sealants for the production of insulating glass; aluminum steel and stainless steel spacers for insulating glass; metal profiles for stained glass. The company has an integrated production at European level and controls either directly or indirectly seven production units. The headquarters are in Tribiano, Italy. The annual turnover of the group reached EUR 120 million in 2003. Internet: www.akzonobel.com; www.fenzigroup.com Not for publication - for more information Akzo Nobel N.V. Marc Michelsen, Corporate Media Relations, tel. +31 26 366 4343 Safe Harbor Statement* This press release may contain statements which address such key issues as Akzo Nobel's growth strategy, future financial results, market positions, product development, pharmaceutical products in the pipeline, and product approvals. Such statements should be carefully considered and it should be understood that many factors could cause forecasted and actual results to differ from these statements. These factors include, but are not limited to, price fluctuations, currency fluctuations, developments in raw material and personnel costs, pensions, physical and environmental risks, legal issues, and legislative, fiscal, and other regulatory measures. Stated competitive positions are based on management estimates supported by information provided by specialized external agencies. For a more complete discussion of the risk factors affecting our business please refer to our Annual Report on Form 20-F filed with the United States Securities and Exchange Commission. A copy of which can be found on the Company's website. * Pursuant to the U.S. Private Securities Litigation Reform Act 1995. ------------------------------------------------------------ This information was brought to you by Waymaker http://www.waymaker.net The following files are available for download: http://www.waymaker.net/bitonline/2004/04/28/20040428BIT20110/wkr0006.pdf Pressmeddelandet som pdf