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SigmaKalon acquires a Market Leader in Cape Town (South Africa)

Published on 2007-12-21. Author : SpecialChem

SigmaKalon has announced the acquisition of the business of the South-African company Neutron Paints. This company has its headquarter in Cape Town and a manufacturing facility in the region of Cape Town. It has 60 employees. The company manufactures and sells high performance, architectural decorative coatings mainly in the region of Western Cape, Eastern Cape and Northern Cape where it enjoys a strong brand equity.

The business will be integrated in one of the SigmaKalon South African operation: Prominent Paints Pty (Ltd). Prominent Paints Pty (Ltd) is located in Alrode, Johannesburg . It currently ranks 3rd in the South African Decorative Paints arena with an 8,5% market share in value at national level.

According to Yvon Porhel, Prominent Paints Managing Director, "We are particularly looking to increase our footprint within the Western Cape Region. This region accounts for 16% of the national paint market and gaining a loyal customer base within this province is key to our national strategy of growing our distribution network. The acquisition of Neutron Paints will allow us to meet this goal."

Neutron Paints have a similar value proposition to that of Prominent Paints. "This is a match made in heaven," commented Jonathan Smith, Neutron Paints Managing Director. "We at Neutron believe in exceptional product quality and service delivery - and Prominent Paints shares these values. The joint efforts, in terms of product development and distribution will mean a better, more innovative offering for all our stakeholders."

Through this transaction, Neutron will benefit from Prominent strong structure in terms of resources (sales management, R&D, technical services). Similarly Neutron will bring an outstanding business knowledge of the Cape Town arena, some innovative products and brands that enjoy superior awareness within the region.

Stéphane Beaucourt, Board Member of SigmaKalon Group with responsibility for decorative coatings in this part of the world said "This is an excellent opportunity to consolidate our presence in the promising market of South Africa".

Source: SigmaKalon


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