KPAL announces agreement for the acquisition of Sadolin Paints
Johannesburg, South Africa, 7 February 2017 – Kansai Plascon Africa Limited (“KPAL”) (Headquarters: Johannesburg, South Africa, CEO: Farid Masood), a subsidiary of Kansai Paint Co., LTD (“Kansai Paint”) (Headquarters: Osaka, Japan, CEO: Hiroshi Ishino) today announced a binding agreement for the acquisition of 100% of Sadolin Paints’ operations in Kenya, Uganda, Tanzania, Zanzibar and Burundi (“Sadolin Paints”). The completion of the transaction is subject to regulatory approvals and other customary conditions. As part of the transaction, the parties have also agreed to separately investigate the acquisition of Sadolin Paints’ operations in Rwanda.
Kansai Paint is a global company with major operations in i) Japan, China and East Asia; ii) South Asia, iii) South East Asia; iv) Middle East; and v) Africa. It is one of the top paint manufacturers and distributors worldwide with a diverse product offering covering the decorative, industrial, protective coatings and automotive space. It has world leading Research and Development facilities catering for development across all products with major R&D facilities in Japan, India and South Africa, which continually drive innovation and excellence in the markets these products serve.
Sadolin Paints is the undisputed market leader in the East African paint industry with a history dating back to 1959. Sadolin Paints is the largest paint manufacturing group in East Africa and the only one with a footprint comprising presence in Kenya, Uganda, Tanzania, Zanzibar, Burundi and Rwanda, with exports to several neighbouring countries including South Sudan, DRC, Ethiopia, Djibouti and Somalia.
The acquisition of Sadolin Paints is part of Kansai Paint’s global expansion strategy. This acquisition further proves Kansai Paint’s long-term commitment to the African continent and will reinforce KPAL´s leading position in Africa and establish its presence in East Africa with a total population of circa 285 million people, representing around 24% and 9% of the total African population and GDP respectively.
Farid Masood, KPAL CEO said “We are extremely excited about the acquisition of Sadolin! Our 2020 vision is now being translated into reality as we evolve from a Southern African focused company to becoming a Pan African company, embracing the challenges and diversity of the continent. Kansai’s strong brand heritage, global technical capability, and trusted performance coupled with Sadolin’s respected reputation and presence in East Africa, will definitely strengthen our position as the leading paint company in Africa, enhancing our future growth and performance.”
KPAL believes that the benefits of the transaction will extend to all stakeholders of KPAL and Sadolin Paints, including distributors and other business partners. KPAL intends to work closely with Sadolin Paints’ management and staff to ensure the continuity of the business and services offered to Sadolin Paints’ valued customers, and to maintain its position as a market leader in the East African markets.