Nippon Paint Holdings Co. has proposed buying Australia’s DuluxGroup Ltd. for A$3.8 billion ($2.7 billion) in cash, giving it access to the country’s No. 1 sales channel for paints and coatings, as well as sealants, adhesives, garage doors, cabinets and architectural hardware.
Nippon is a global leader in the paints and coatings industry and generated approximately A$7.8 billion in sales for the financial year ended 31 December 2018, with operations in Asia, Europe and the US. Nippon has essentially no operations in Australia or New Zealand.
The proposed acquisition is an important step in Nippon’s global growth ambitions. DuluxGroup will be run as a separate division and will retain the DuluxGroup name.
Nippon’s President & CEO, Mr. Tetsushi Tado said: “We are excited by the prospect of welcoming DuluxGroup into the Nippon Group. Patrick and his team have built DuluxGroup into the pre-eminent provider of housing improvement products in Australia and New Zealand with market-leading and iconic brands operating from world-class manufacturing facilities. The combination of DuluxGroup and Nippon will provide further avenues of growth for DuluxGroup and create exciting opportunities for all of the DuluxGroup management team and employees. Nippon intends to maintain the legacy developed by DuluxGroup and facilitate DuluxGroup’s existing vision by leveraging the resources of the broader Nippon platform. As part of the Nippon Group, it will be business as usual and DuluxGroup will still be DuluxGroup.”