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Berger Buys Sherwin-Williams Unit

Thursday, March 14, 2013

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Plugging key market gaps in India, Berger Paints India Limited has announced plans to purchase the architectural operations of Sherwin-Williams Paints India.

Berger subsidiary Brushworks Paints Limited will acquire Sherwin-Williams' architectural coating operations in India for an undisclosed sum, Berger announced.

Berger Paints
Photos: Berger Paints

Berger Paints is India's No. 2 coating maker. Asian Paints controls more than half of the decorative market. The new acquisition will create new markets for Berger.

"This transaction will significantly increase our present in key markets," said Berger chairman K.S. Dhingra. The deal "builds on our strategy to grow our architectural paint business throughout India, and it brings a high quality, committeed team of employees to Berger Paints India Limited."

He added: "We are proud to welcome such a well-respected team into the Berger family."

'Strategic Fit'

Founded in 1923, Kolkata-based Berger Paints India is a leading manufacturer of decorative and industrial paint products. India's second-largest coatings company (Asian Paints is the market leader by far), Berger has seven manufacturing facilities; more than 2,500 employees; and more than 15,000 dealers.

Although the acquisition will not add significantly to Berger's manufacturing capacity, reports said, it will fill geographic holes in the company's market.

Currently, Berger's strength is in India's north and east, while Sherwin-Willliams' market is concentrated in the west and south, The Times of India notes, calling the acquisition "a strategic fit."

Berger Paints - protective coatings

Berger Paints will still compete with Sherwin-Williams in India's protective coatings market, but the Indian manufacturer says it is open to future acquisitions.

Managing Director Abhijit Roy told the The Hindu Business Line, “The acquisition will increase our presence in South India through their dealer network. Sherwin Williams has a strong foothold in the southern market. It will also help increase our overall capacity and attain a market share of 24 percent.”

Industrial Designs

Berger, which is also expanding its production facilities, will continue to compete with Sherwin-Williams in the industrial coatings sector, however, The Hindu Business Line reports. The Cleveland-based coatings maker entered the Indian market in 2007 with the $7.8 billion purchase of Nitco Paints.

Asked if Berger was considering puchasing other Sherwin-Williams units in India, Roy told the newspaper: “It was they who approached us with the takeover, so if they find any synergy in the industrial business, we might consider it, too.”

   

Tagged categories: Acquisitions; Architectural coatings; Asia Pacific; Asian Paints; Berger Paints; Business matters; Coatings Technology; Decorative coatings; Market share; Sherwin-Williams

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