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Nippon Acquires Betek Boya

Wednesday, May 8, 2019

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Nippon Paint Holdings Co. Ltd. (Osaka, Japan) recently announced via press release that it has acquired Turkish paint manufacturer Betek Boya.

According to Nippon, Boya plays a leading role in insulation materials as well as decorative and industrial paints for construction in Turkey. The company is also expected to have high growth potential in the market.

Tokumeigakarinoaoshima, CC-BY-SA-4.0, via Wikimedia Commons

Nippon Paint Holdings Co. Ltd. (Osaka, Japan) recently announced via press release that it has acquired Turkish paint manufacturer Betek Boya.

Through the business attainment, Nippon will achieve a No. 1 market share in Turkey in addition to Asia, where Boya has built a strong presence, and the Pacific region, where the acquisition of Australia-based company Dulux, was recently announced as well.

Nippon stated in a release presentation that, “While GDP growth has slowed since the second half of 2018, historically Turkey has gone through economic cycles every 6-7 years followed by a rebound within 1-2 years, and considering the population pyramid and growth potential of the Turkish markets, this is the optimal time to invest."

In addition, Nippon believes that the transition will help to continue achievement in the company’s medium-term management plans and in the realization of its medium- and long-term management policies.

The Acquisition of Shares (Acquisition of Ownership) estimates that the full acquisition will be complete by June 2019. Nippon plans to raise funds for the share acquisition by borrowing from financial institutions, but does not plan to raise funds through the issuance of new shares.

The acquisition price will not be released until the deal has been closed.

Prior Acquisitions

Previously, in March, Nippon Paint Marine (Europe) also announced that it would be looking to the Middle East for possible expansion opportunities. The search for a new location followed the company’s recent report of a 35% increase in consolidated sales. Nippon is currently eyeing the opportunity of a new sales and distribution office in the United Arab Emirates, with hopes to open later this year.

The company also attempted an acquisition in 2017 with global coatings manufacturer, Axalta Coating Systems (Philadelphia) in efforts to expand sales for automotive manufacturers, as well as increase its U.S. footprint. However, less than two weeks after the potential deal was publicized, talks ended without agreement.

   

Tagged categories: Acquisitions; Asia Pacific; Business management; Business matters; Business operations; Coating Business; Coatings; Coatings manufacturers; EMEA (Europe, Middle East and Africa); Good Technical Practice; Latin America; Mergers; Nippon Paint; North America; PaintSquare App - Commercial; Z-Continents

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