Nippon Paint completes AOC acquisition, restructures debt

Nippon Paint Holdings (TSE:4612) announced the completion of its acquisition of AOC, a global specialty formulator, effective March 3, 2025. This acquisition, initially announced October 28, 2024, positions AOC as a wholly-owned subsidiary. To optimize financing following the acquisition, Nippon Paint is leveraging its "Asset Assembler" model by increasing capital in its subsidiaries: LSF11 A5 TopCo LLC, LSF11 A5 MidCo LLC, and LSF11 A5 HoldCo LLC (collectively, "AOC"). This capital increase will be funded by low-cost, yen-based financing to refinance existing debt. The total investment in the acquisition of AOC was $2.194 billion. Following the capital restructuring, TopCo, MidCo and HoldCo become specified subsidiaries and the company expects a negligible impact on its business performance and financial position.