TOKYO: Nippon Paint Holdings, Japan’s largest manufacturer of paints and coatings, announced on Wednesday that it plans to acquire Australia’s biggest paint maker, DuluxGroup, for JPY 300 billion ($2.6 billion), moving ahead with its worldwide expansion.
The Japanese company has offered $9.80 Australian dollars ($7.02) per share in cash, which includes 15 Australian cents per share for the interim dividend DuluxGroup intends to pay. The offer represents a 28% premium over DuluxGroup’s closing price on Tuesday. Nippon Paint aims to complete the buyout in mid-August.
The acquisition will allow Nippon Paint to expand its global footprint. The company generates 60% of its sales from Asia outside Japan, mainly in China.
DuluxGroup is the top paint maker in Australia and New Zealand, with revenue totaling $1.3 billion in the year ending September 2018.
In a statement, DuluxGroup, Chairman Graeme Liebelt said: “The board has carefully considered the strategic options available to DuluxGroup to maximize value, including continuing to pursue domestic and global growth as a stand-alone company, and we have unanimously concluded that the transaction with Nippon is in the best interests of our shareholders.”[the_ad id=”31605”]