TAGS: Architectural Coatings
Nippon Paint has announced that based on a resolution of the board of directors, it has decided to acquire the outstanding shares of Betek Boya ve Kimya Sanayi A.Ş. and 9 group companies of Betek.
Establishing a Leading Position in Asia
Under the three-year medium-term management plan, which started in fiscal year 2018, the Company aims to become a leading company that continues to create new value by advocating the goal of “establishing an leading position in Asia and accelerating global growth.” Through focusing on reinforcement of existing segments, acceleration of expansion of existing portfolios, improvement of profitability, and reinforcement of the “Global One Team” management, the Company has worked hard to implement these goals.
Decorative Paint Market in Turkey
The decorative paint market in Turkey is an appealing market for which high growth is expected. Betek Group, which is the group of companies the Company is acquiring shares, was founded in 1988 and handles ETICS (External Thermal Insulation Composite System: insulation materials), etc. in addition to decorative paint and industrial coatings for construction. Betek group is a leading company that has the top share in the decorative paint market in Turkey. Its major brands Filli Boya and Fawori have a large market share and a high brand-recognition level.
In addition to the regions in Asia and China, where the Company has had a strong presence in, the Company will position itself as one of the leading players in the Turkish markets with strong expected growth, capturing the high growth potential of the Turkish markets.
Furthermore, by contributing know-how and business resources the Company has accumulated through its Asian paint and coatings business into Betek Group, it will be possible to further accelerate the speed at which Betek Group will expand its business.
Transaction to Contribute to Management Plans
The Company firmly believes that this transaction will greatly contribute to the achievement of the Company’s medium-term management plans and the realization of our medium/long-term management policies.
The Company will be the acquisition entity for the Share Acquisition of Betek shares. The Company expects to raise the funds for the Share Acquisition from borrowings from financial institutions. The Company is not planning to raise funds through the issuance of new shares.
Source: Nippon Paint