Change of Owner for Akzo Nobel Inks in Place

Akzo Nobel Inks has left the Akzo Nobel group, following a management buy-out with the involvement of the Dutch venture capital company NeSBIC.
    
“We now have the chance to act more independently to secure the business, and expand in an industry where there’s been an urgent need for continuing structural changes for some time,” said Peter Koivula, the company’s CEO.
    
Mr. Koivula joined Akzo Nobel Inks, which has 900 employees and an annual turnover of 190 million euros,in spring 2000 from Sun Chemical. He had two goals: to improve profitability by cutting costs and making the business more efficient, and to sell the company.
    
“We’re now profitable,” Mr. Koivula said. “We produce more with fewer employees. And we have new owners that have already created expectations within our own organization, along with a good response from customers.”         
With new capital behind it, and in partnership with Swedish bank Handelsbanken, Akzo Nobel Inks will invest in further development and take-overs. That Akzo Nobel Inks will be allowed to keep the name for the coming years should guarantee a smoother transition.
    
As a printing inks manufacturer, Akzo Nobel Inks was never really part of Akzo Nobel’s core business. Discussions with the parent group had been going on for several years about finding new owners for the company. Akzo Nobel does not want the purchase price to be divulged, but Mr. Koivula said that the parent group did not simply seek the most profitable solution. It wanted to be sure that the solution was the best for everybody, including the staff.
    
“A management buy-out guarantees total commitment, and builds confidence among investors and other financiers,” Mr. Koivula said. “NeSBIC was very positive about our solution, and the fact that we will soon also be inviting employees to invest.” NeSBIC will maintain a strong presence on the company’s board.
    
“Negotiations with other interested parties were going on right up to the last minute,” Mr. Koivula said. “At that stage, our competitors in the industry were involved. If we’d had a solution like that, it would probably have meant that units would have closed, with many of the workforce losing their jobs. This way, everybody can stay with us, and it’s business as usual.”
    
Akzo Nobel Inks has been a world-leader in inks for label printing, and the intention is to reinforce that. The same applies to the strong general position in Scandinavia and northern and eastern Europe. Otherwise, it will be a case of globalization. “We have a strong position in Europe. But Europe is also being globalized, and we must be there for our customers in that process, with a strong presence in all the world’s markets,” Mr. Koivula said.
    
“Today, about 70 percent of the market is controlled by three major players. The other players are small- or medium-sized, and far too many of them have far too low profitability. Our goal is to make Akzo Nobel Inks a major European and global player in the printing ink industry,” said Mr. Koivula.