Swiss specialty chemicals firm Sika AG is preparing to divest its European industrial coatings business to American paints and coatings supplier Sherwin-Williams in a CHF 75 million (about $82 million) deal, the parties recently announced in separate releases.

The Germany-based business produces and sells corrosion protection coating systems for high value interior and exterior steel infrastructure, chemicals, power transmission and stations, and other applications.

“This transaction fits our strategy of acquiring complementary, high-quality, differentiated businesses that add to our profitable growth momentum,” Sherwin-Williams Chairman, President, and Chief Executive Officer John G. Morikis said in a statement. “The business brings us scale, unique technology, a strong sales and marketing team, technical service capabilities, strategically located manufacturing, and leading specification and approval positions, all of which we can leverage further throughout Europe and other regions across the world.”

Sika said it decided to sell the business because it provides “little synergy potential” to the group and it has “remained a specialized niche.” As part of the transaction, Sherwin-Williams will take on the business’ main production site in Vaihingen, Germany.

“It is of great importance for Sika to have found a good strategic owner for the European industrial coatings business that will continue to invest in the further development of its people and products,” Ivo Schaedler, regional manager, EMEA, for Sika, said in the firm’s release. “Customers can continue to rely on the availability of high-quality products and technical support in the future. Within this organization, the industrial coatings business, along with its employees, will be in an ideal position to develop and grow to their full potential.”

The companies anticipate that the sale will close in early 2022.