AkzoNobel's Automotive and Aerospace Coatings business is growing its automotive repair distribution network in the US through an expanded relationship with LKQ Corporation. The deal will involve the divestment of approximately 40 company owned stores to LKQ.
The transaction impacts all AkzoNobel branch operations in the US that are involved with automotive repair direct sales. The agreement between the two companies will see AkzoNobel's Sikkens, Lesonal and U-Tech brands distributed by LKQ. Financial details were not disclosed.
"As part of AkzoNobel's new sustainable growth strategy we want to focus on growing our market share in mature markets and this deal will enable us to do that," explained Leif Darner, AkzoNobel's Executive Committee member responsible for Performance Coatings. "By partnering with LKQ, we will be able to offer our products to a wider set of customers and strengthen our leadership position in one of our most important markets."
With nearly 300 facilities, LKQ is the largest nationwide provider of aftermarket recycled and refurbished collision and mechanical replacement products for the automotive and truck market. Their diverse network as a partner to thousands of collision repair centers has made them one of the leading vehicle refinish paint distributors in the US.
"LKQ Corporation is one of the most recognized and respected names in the automotive industry and we are proud to have them as part of our growing North American network of distribution partners," added Jim Rees, Managing Director of AkzoNobel's Automotive and Aerospace Coatings business. "By moving towards independent distribution in North America, we can focus on strengthening our leadership in providing exceptional products, technology and service to the automotive repair industry."
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AkzoNobel is the largest global paints and coatings company and a major producer of specialty chemicals. We supply industries and consumers worldwide with innovative products and are passionate about developing sustainable answers for our customers. Our portfolio includes well known brands such as Dulux, Sikkens, International and Eka. Headquartered in Amsterdam, the Netherlands, we are a Global Fortune 500 company and are consistently ranked as one of the leaders on the Dow Jones Sustainability Indexes. With operations in more than 80 countries, our 55,000 people around the world are committed to excellence and delivering Tomorrow's Answers Today(TM).
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