Tikkurila to sell its business operations in the Balkan area
Tikkurila Oyj has entered into an agreement to sell the entire share capital of its subsidiaries in Serbia and Macedonia to the local management of Tikkurila. The market development in the region has not met the company's expectations.
The buyer will continue the distribution of Tikkurila branded products in the Balkan area.
Unprofitable operations
Tikkurila's Balkan business operations have been unprofitable for a long time. The general economic development in the region has been weaker than anticipated and the demand for premium products has remained modest. Divestment of the subsidiaries in Serbia and Macedonia is part of a more extensive program to boost the competitiveness of Tikkurila.
Closing in first quarter of 2018
The combined revenue of the two companies to be sold was approximately EUR13 million in 2016, and the number of employees totaled 130. It is estimated that the transaction will be closed during the first quarter of 2018. Tikkurila entered the Balkan area in 2011 by acquiring the business operations of a Serbian paint company Zorka Color. In addition to Serbia, the company operated also in Macedonia, Bosnia and Herzegovina, Montenegro, Croatia, and Kosovo.
