Chemicals, Paper & Packaging Weekly Update

Research evidence excerpt

Chemicals, Paper & Packaging Weekly Update

Exhibit 3: Notable Events for the Week Ending Jul 17, 2026

Notable events in the Chemicals and Paper & Packaging sectors

July 13 AkzoNobel received multiple non-binding proposals from Nippon Paint to acquire AkzoNobel’s Decorative

Paints business for €7.5 bn (on a net-debt free basis), or 11.2x LTM Q1:26 EBITDA of €667 mm on €4,019

mm of sales.

The Nippon Paint Proposal constitutes an Alternative Proposal under its merger agreement with Axalta

Coating Systems, as well as significantly undervaluing Akzo’s Decorative Paints business.

Some Decorative Paints acquisition comps:

▪ In June 2021, PPG acquired publicly-listed Tikkurila for €1,512 mm, or 17.4x EBITDA of €87 mm on €582

mm of sales. (This was a bidding war: PPG offered €1,121 mm (12.8x) in Dec. 2020, then raised its offer to

€1,243 mm (14.2x) in Jan. 2021, then Akzo offered €1,397 mm (15.9x) in Jan. 2021).

▪ In June 2017, Sherwin-Williams acquired publicly-listed Valspar for $11,290 mm, or 16.2x EBITDA of

$697 mm on $4,264 m of sales.

▪ In Jan. 2001, Berkshire Hathaway acquired publicly-listed Benjamin Morre for $1,015 mm, or 6.9x EBITDA

of $147 mm on $818 mm of sales.

July 13 AkzoNobel‘s Russian subsidiaries have been placed under temporary external administration to temporary

administration.

Russia represents <2% of Akzo’s sales.

July 13 Graphic Packaging enters the uncoated recycled board (URB) paperboard market with its PaceSetter

Ridgeline (100% recycled fiber, including 45% post-consumer recycled content), for use in folding cartons,

laminations, edge protectors, tubes and cores, among other end-uses. The product is made at GPK’s Waco, TX

facility.

Source: Company reports and BofA Global Research

BofA GLOBAL RESEARCH

Exhibit 4: Chemicals

Upcoming Earnings Calls