Nippon Paint acquires Turkish paint manufacturer Betek Boya
The Japanese company signed an agreement for the transfer of shares in Betek Boya and its subsidiaries.
Betek Boya was expected to see sales of EUR 240 million (TL 1.6 billion) last year, reports Turkish Online portal Daily Sabah. German paint company DAW holds nearly 25 % of Betek’s shares, while the majority stakeholder is the Akpinar family of Turkey.
In a presentation prepared for the investors, Nippon said by acquiring Betek Boya the company will achieve the largest market share in Turkey in addition to Asia, where the company has long had a strong presence in, and the Pacific region, where the acquisition of the australian company Dulux for approximately EUR 2.38 billion was recently announced.
Attractive market for paint manufacturers
The Japanese company also cited the attractive market, with favorable population figures and high economic growth in Turkey in addition to expected expansion of the decorative paint with particular reference to the outstanding and experienced management with a track record of expanding the business, as well as the modern and large production facility of Betek Boya in Turkey.
Daily Sabah further cites Nippon: “While GDP growth has slowed since the second half of 2018, historically Turkey has gone through economic cycles every 6-7 years followed by a rebound within 1-2 years, and considering the population pyramid and growth potential of the Turkish markets, this is the optimal time to invest.”
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