Slovenia: DuluxGroup Limited plans to take over the Jub factory

DuluxGroup Limited, an Australian paint group owned by Paint Holdings Co., Ltd. (NPHD) of Japan, has confirmed the entry into a binding agreement to buy Jub, a large Slovenian paint company, in a deal worth 194.5 million euros. DuluxGroup plans to turn Jub into a hub for Central and Eastern Europe, preserve its existing brands and make it part of Nippon Paint’s R&D community.

“Under the auspices of DuluxGroup, Jub will enjoy autonomy and independent growth, while at the same time taking advantage of Nippon Paint Group’s access to a global market, technologies, capabilities and abundant capital resources,” the company said in the announcement. for Friday press. .

Patrick Houlihan, chairman and CEO of DuluxGroup, said that with the support of the world’s fourth largest paint manufacturer, Jub will continue to build its leading position in the regional market, strengthening innovation, portfolio and geographical reach. He could also play an important role in expanding the group in Western Europe.

In a separate announcement to investors, Nippon Paint said Jub commanded market leading positions in several paint segments in Slovenia, Croatia, Serbia and Bosnia and Herzegovina, where the acquisition would allow it to make better use of its distribution network.

Nippon Group plans to “build a bridge top” for decorative paints and exterior thermal insulation systems in Central and Eastern European markets.

The transaction involves the acquisition of 99.8% of Jub Group. In the Stock Purchase Notice released Friday, Nippon Paint Holdings Co., Ltd. (NPHD) says that “the European paint market is the second largest in the world after the China market and has the prospect of continuing to grow steadily. JUB is a manufacturer of decorative paints, ETICS and other paint related products, with a market presence and a wide distribution network in Central Europe based in Slovenia, Serbia, Croatia and Bosnia and Herzegovina. JUB is one of the market leaders in interior paints in Slovenia, Croatia and Bosnia and Herzegovina and in facade paints in Slovenia, Serbia and Bosnia and Herzegovina, commanding 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 buy the shares of JUB, a UK start-up company from DuluxGroup, using funds provided by the NPHD through borrowing from financial institutions.

Leave a Reply

Your email address will not be published. Required fields are marked *