Acquisition · Chemicals / Coatings
Nippon Paint to buy US specialty resin maker AOC from Lone Star for $2.3 billion
- Buyer
- Nippon Paint Holdings (Tokyo / Osaka)
- Target
- AOC, Tennessee
- Value
- $2.3B
- Status
- Completed on March 3, 2025, at about $2.19 billion after adjustments.
- Date
- 2024-10-28
Nippon Paint Holdings agreed to acquire Tennessee-based AOC, a maker of unsaturated polyester and vinyl ester resins and related formulations, from private equity firm Lone Star Funds. AOC sells into infrastructure, construction, transportation and recreation markets and operates in North America, Europe and Asia. The price was about $2.3 billion (roughly ¥334 billion).
Why it matters
Nippon Paint framed the deal as a way to add earnings per share, extending its strategy of buying stable, cash-generating businesses outside its core paint brands. It also gives the group a sizable US-based specialty-materials business with reach into Europe and Asia.
The deal
Nippon Paint agreed on October 28, 2024 to buy all of AOC's parent company from private equity firm Lone Star Funds for about $2.3 billion. Nippon Paint expected it to add to earnings per share from the first year, even before any savings. The deal closed on March 3, 2025, at about $2.19 billion after adjustments.
What AOC makes
AOC, based in Collierville, Tennessee, makes specialty resins, mainly unsaturated polyester and vinyl ester, plus colorants and other formulations. Its products serve infrastructure, construction, transportation and recreation markets across North America, Europe and Asia.
Nippon Paint's approach
Nippon Paint, majority owned by Singapore's Wuthelam group, grows by buying steady, well-run companies and leaving their managers in place. AOC adds specialty chemicals and a bigger base in the US and Europe.
Sources
Kakehashi M&A News home
