Interview: “We are leveraging the high growth potential of the paint market
Nippon Paint will acquire Cromology, a French maker of decorative paints, through its Australian subsidiary Dulux Group. The share acquisition will be conducted through DGL International, a UK-based company newly established by Dulux Group. We have talked with Nippon Paint about the EUR 1.15 billion deal.
What made Cromology an especially attractive prospect?
We believe that Cromology has several distinctive strengths and valuable assets. For example, Cromology is the fourth largest architectural paints manufacturer in Europe where the European decorative paints and coatings market is recognised as having good prospects for stable growth. The business has strong market leadership positions in key European markets including being rated top three in France, Italy, Spain and Portugal. Additionally, Cromology also has a strong brand portfolio, a very capable and experienced management team, extensive trade-focused owned and independent distribution networks and broad supply chain footprint across key regions.
You’ve said that Cromology will provide a platform for other bolt-on acquisitions. Could you expand on this please?
With this acquisition, we aim to make Europe an important pillar in our global deco paints and coatings business with this acquisition. We believe that Cromology has a high potential for substantial revenue synergies through leveraging Nippon Paint Group’s scale and capabilities. By sharing our group’s platform alongside their strong brand portfolio, extensive distribution networks, very capable management team with its solid position in the European market, Cromology will be able to deliver further growth.
You are continuing your expansion in Europe by purchasing a stake in the Jub Group, Slovenia. How does this complement Cromology?
JUB is a market leader in decorative paints and coatings and ETICs in Central and Eastern Europe with a talented management team. The acquisition of JUB enables various synergies through collaboration with Cromology and the broader Nippon Paint Group given the complementary product portfolio, particularly in respect of ETICs, distribution channels and supply chain competitiveness. We expect that this collaboration will drive further growth in the broader European market over time.
Do you plan any further acquisitions?
We are aggressively pursuing M&A activities by leveraging the high growth potential and stable cash flows of the paint market to firmly establish our sustainable growth and further increase our market presence around the world.
This interview is part of a longer article on the acquisition which can be read in the December issue of the European Coatings Journal.
