AkzoNobel Reveals New Management Structure, Lowers Earnings Projections

The AkzoNobel executives that repeatedly rebuffed acquisition overtures from rival paint maker PPG either departed or are preparing to do so as the company continues to face investors' wrath months later.

The Dutch chemical and paint company announced Friday, ahead of a meeting with shareholders, that chief financial officer Maëlys Castella would step down citing health reasons. She joins former CEO Ton Buechner — who also left amid health concerns — and chairman Antony Burgmans, who plans to retire next year.

Burgmans told Reuters that the timing of the departures was "purely coincidental," but they followed efforts by a top stakeholder to oust Buechner and Burgmans in recent months.

New CEO Thierry Vanlancker, meanwhile, announced a corporate restructuring and revised financial projections ahead of the shareholder meeting.

The new management structure will create four regional units within its paints business and four integrated units in the coatings and specialty chemicals businesses, but the company raised additional questions by abandoning its goal of a 100-million-euro increase in annual earnings for 2017.

AkzoNobel had set that goal during its fight to stave off PPG's acquisition bid. Officials at the time argued that PPG's offers undervalued the company and that it could move forward more effectively by selling its chemicals segment.

Investors, however, argued that the chemical industry remains in an era of consolidation and noted that the PPG offer represented a 50 percent premium on AkzoNobel's stock price.

“In retrospect, maybe I should have listened a bit better to shareholders, maybe I should have shown some more humility," Burgmans said at the shareholder meeting, according to Reuters.

The company blamed the revised financial goals on higher raw material costs and a slew of temporary issues, including the effects of Brexit, supply chain interruptions due to Hurricane Harvey in the U.S. and a fire at a Dutch refinery.

"Our new management structure will increase customer focus, drive further operational excellence, and build greater momentum and speed," Vanlancker said in a statement.