Bain sells Dutch paint company for €2.2bn

A US conglomerate will buy Bain Capital portfolio company SigmaKalon in a €2.2 billion transaction. The US buyout firm is believed to have paid roughly €1 billion for the Dutch paint company in 2003.

Bain Capital is to sell Dutch paint and coatings company SigmaKalon to PPG Industries in a transaction valued at €2.2 billion ($1.5 billion) including the assumption of debt. Additional financial details were not disclosed, and the transaction is subject to regulatory approvals.

SigmaKalon paints

The US buyout firm purchased the decorative paints business from Atofina, the chemicals division of Franco-Belgian oil and gas group TotalFinaElf, in 2003 and is believed to have paid roughly €1 billion. French newspaper reports at the time suggested that Bain had won the right to exclusive negotiations for the company, with Permira, Industri Kapital, PAI Management, Kohlberg Kravis Roberts and a consortium of the Carlyle Group, Advent International and CDC Equity Partners all losing out.

SigmaKalon’s new buyer, PPG, is a $13 billion conglomerate headquartered in Pennsylvania that supplies paints, coatings, chemicals, optical products, specialty materials, glass and fiber glass worldwide.

This is the second deal this week in the specialty coatings and paint sector. Yesterday, Apollo Management made an investment of an undisclosed size in California Products Corporation, a maker of architectural coatings including house paints and tennis court surface materials.