Nippon Paint to buy AOC

Nippon Paint Holdings has agreed to purchase AOC, a manufacturer of coatings, adhesives, sealants, elastomers, colorants, and composites for $4.35 billion, including debt. AOC’s current owner, the private equity firm Lone Star Funds, will also receive a cash consideration of $2.3 billion for the company, which will operate as a wholly owned subsidiary of Nippon Paint when the deal closes in the first half of 2025. Last year, AOC reported $1.5 billion in sales and profits of around $131 million. Its product lines consist mostly of high-performance polymer formulations based on vinyl and isophthalic esters for use in pipeline liners, construction, and other industrial and infrastructure applications. Nippon Paint sees AOC and its diversified markets as a new pillar for growth.