DuluxGroup Limited intends to take over the Jub plant
DuluxGroup Limited, an Australian group of paint manufacturers owned by Paint Holdings Co., Ltd. (NPHD) from Japan, confirmed the conclusion of a binding contract for the purchase of a large Slovenian paint company Jub in a deal worth 194.5 million euros. DuluxGroup plans to turn Jub into the heart of Central and Eastern Europe, retain existing brands and become part of the Nippon Paint R&D community.
“Under the auspices of DuluxGroup, Jub will enjoy autonomy and independent growth, while reaping the benefits of access to the Nippon Paint Group’s global market, technologies, capabilities and rich capital resources,” the company wrote in a press release Friday. .
Patrick Houlihan, President and CEO of DuluxGroup, said Jub, with the support of the world’s fourth-largest paint manufacturer, will continue to strengthen its regional market leadership and strengthen its innovation, portfolio and geographic reach. It could also play an important role in the group’s expansion into Western Europe.
In a separate announcement for investors, Nippon Paint said that Jub is the market leader in several color segments in Slovenia, Croatia, Serbia and Bosnia and Herzegovina, which will enable the purchase to make better use of its distribution network.
The Nippon Group intends to build a bridgehead for decorative paints and external thermal insulation systems in the markets of Central and Eastern Europe.
The transaction involves the purchase of 99.8% of Jub Group. In a share purchase notice released Friday, Nippon Paint Holdings Co., Ltd. (NPHD) says that “the European paint market is the second largest in the world after China and has prospects for further steady growth. JUB is a manufacturer of decorative paints, ETICS and other color products, with a market presence and an extensive distribution network in Central Europe, focused on Slovenia, Serbia, Croatia and Bosnia and Herzegovina. JUB is one of the leaders in the market of interior paints in Slovenia, Croatia and Bosnia and Herzegovina, and in the field of facade paints in Slovenia, Serbia and Bosnia and Herzegovina, which has a leading position in the market.
The acquisition is expected to contribute to the increase in EPS from the first year of acquisition. DGL International (UK) Ltd will acquire shares in JUB, a company newly established in the United Kingdom by DuluxGroup, using funds provided by NPHD through loans from financial institutions.