Kansai Plascon to Acquire 90% Sadolin of Kenya Stake for $100m

Company will weigh whether to acquire remaining 10% after 2 years, Kansai Plascon East Africa President Gary van der Merwe tells reporters in Kenyan capital, Nairobi.

* Plans to invest between $500,000 to $1.5m in the business in next 5 years;
* Expects to expand powder coating business; sees growth in automotive industry especially from automobile companies setting up in Kenya;
** NOTE: Automobile companies including Volvo, Peugeot, Iveco, Volkswagen are setting up assembly plants in East Africa’s biggest economy as regional demand grows;
* Sadolin Paints Kenya will be renamed Kansai Plascon Kenya as part of Kansai Plascon East Africa;
* Sadolin has plants in Kenya, Tanzania, Uganda where it’s market leader in all three; also has paint distribution network in countries including Somalia, Democratic Republic of Congo, Burundi, Rwanda, South Sudan;
* Targets to double turnover to $1b in next five years, expects 15% annual growth in existing markets;
* Kansai Plascon targets Ghana entry, looking at Ethiopia. Source: Bloomberg