On October 20, 2021, Nippon Paint Holding Co., Ltd. (NPHD) announced that its consolidated subsidiary Dulux Group Co., Ltd. (Dulux Group) has committed to acquire the equity capital of Cromology Holding SAS (Cromology) and its subsidiaries. It indirectly became a subsidiary of Nippon Paint Holding Co., Ltd.
Nippon stated that the equity acquisition will be carried out through DGL International (UK) Ltd, a newly established British company of its holding company Dulux Group. Cromology is engaged in the manufacturing and sales of decorative coatings and other coating-related products in Europe. Dulux Group has signed a put option agreement with Cromology’s major shareholder (Wendel Group) through its subsidiary Winvest International SCS FIAR, under which Dulux Group promised to acquire Cromology.
The board of directors of Nippon Paint Holdings Co., Ltd. decided at a meeting held on October 13, 2021 to entrust the decision to sign a put option agreement (with a draft share purchase agreement) to the representative executive officer and co-president. Given that all conditions have been met, it is decided to sign an agreement on October 20, 2021. The transaction will be completed in the first half of 2022, subject to customary regulatory approval.
This marks that Nippon Paint will acquire Cromology Holding SAS (Cromology), the fourth largest decorative paint manufacturer in France, from Wendel Group. It is reported that Nippon Paint will pay 1.152 billion euros (approximately 1.3 billion US dollars) for the acquisition of Cromology.
Cromology is the fourth largest manufacturer of decorative coatings in Europe. As a leader in the architectural coatings market, Cromology has a broad European market and a high market share. It ranks among the top three in France, Italy, Spain and Portugal. It is designed for professionals and consumers. Manufacturing, sales and distribution of various decorative coatings and products. The European coatings market is the second largest market in the world after China and has stable growth prospects.
According to Europe’s 25 Largest Coating Manufacturers in 2021 published by European Coatings Magazine, Cromology’s sales in 2020 are 440 million euros, ranking ninth on the list, and its operating income in 2019 is 415 million. Euro, an increase of 6%. However, the data disclosed by Nippon Express shows that Cromology’s net sales in 2020 will be 628 million euros.
Source: Nippon Paint
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