PPG and Tikkurila announced that they have amended the previously announced definitive agreement, under which PPG will acquire all issued and outstanding stock of Tikkurila in an all-cash transaction, to increase the cash offered for each share of Tikkurila stock. Pursuant to the revised offer, Tikkurila shareholders will receive €27.75 in cash for each share of Tikkurila stock they own, for a total transaction value of approximately €1.24 billion, including the assumption of debt and cash.

The increased offer price was due to Tikkurila’s receipt of a proposal regarding a competing offer. Both companies expect the tender offer for all outstanding shares to commence on or around January 15. The transaction is expected to close in the second quarter of 2021, subject to customary closing conditions.

“The combination of PPG and Tikkurila is highly synergistic due to the complementary geographies, product offerings and cultures,” said Michael McGarry, PPG Chairman and CEO.

He further added that the company will be able to extend the reach of the strong Tikkurila products, and immediately utilize Tikkurila’s well-established distribution network across the Nordic region for a wide variety of PPG products.

“From a cost standpoint, the Tikkurila management team has implemented a broad margin improvement program over the last couple of years, and we will continue that momentum with supply chain and other traditional acquisition-related synergies. This combination, including the synergy capture, will result in significant value creation for our shareholders, and is to the benefit of both companies’ employees, customers and all other stakeholders,” he added.