Akzo Nobel Buys Out Dexter To Become Sole Owner Of AD Aerospace Finishes

AD Aerospace Finishes (ADAF) is now a wholly-owned business of Akzo Nobel (Arnhem, Netherlands), after the Dutch firm bought out the Dexter Corp.'s 40% stake in the joint venture. ADAF has been renamed Akzo Nobel Aerospace Coatings.

ADAF came under close scrutiny last year when Akzo Nobel announced its acquisition offer for Courtaulds. Under the competition rules of the European Union, Akzo Nobel's joint venture with the Dexter Corp. was considered an encumbrance due to Akzo's proposed acquisition of Courtauld's Aerospace Coatings and Sealants (ACS) business.

In order to satisfy the European Union, Akzo Nobel had to either sell its 60% share in ADAF to the Dexter Corp. and retain Courtaulds' ACS business, or retain its joint venture position in ADAF and sell the Courtaulds' ACS business. At the time of the acquisition, Courtaulds' ACS business was placed under the control of Credit Suisse First Boston (CSFB) and has been operated on a trustee basis by them in order to avoid the possibility of market coordination between the two businesses.

Under the terms of the joint venture agreement, when Dexter Corp. decided that they would not purchase Akzo Nobel's 60% in ADAF, Akzo Nobel was then entitled to terminate the agreement and acquire Dexter's 40% participation.

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