Following the announcement on March 28 that AkzoNobel would sell 100 percent of its Specialty Chemicals business to The Carlyle Group and GIC for an enterprise value of €10.1 billion (approximately $12.5 billion USD), the company has issued a progress report.

AkzoNobel says it has successfully completed the dual-track process for the separation of Specialty Chemicals business and to sell Specialty Chemicals to The Carlyle Group and GIC. It is on-track implementing its “Winning together: 15 by 20” strategy.

The company also has announced that robust pricing initiatives are ramping up. AkzoNobel says price increases were successful in the first quarter of 2018, and a second wave of price increases will come in 2018. Selling prices are up 3 percent overall and for all businesses.

Revenue is down 8 percent, mainly due to adverse foreign currencies (1 percent lower excluding currency impact). Net income from total operations up 5 percent to €253 million (approximately $309 million USD) including discontinued operations at €134 million (approximately $110 million USD).

Akzo Nobel N.V. CEO, Thierry Vanlancker, said, “We delivered a key milestone in creating two focused, high-performing businesses with the agreement to sell Specialty Chemicals to the Carlyle Group and GIC for €10.1 billion. Headwinds continue for Marine and Protective Coatings, as well as currencies and higher raw material costs. Results were lower compared to an exceptionally strong quarter last year.

“We are ramping up our pricing initiatives and have implemented various cost discipline measures to deal with higher raw material prices. Initial savings from creating a fit-for-purpose organization are also being realized. The transformation is gaining momentum and we are on track for delivering 15 percent return on sales by 2020.”