Kemira: Closing of deal between Tikkurila and Kraski Teks of Russia
6 February 2006, Kemira follows its strategy of strengthening its market position in Eastern European paint markets. The transaction by which Tikkurila, the company responsible for the paints and coatings business of the Kemira Group, acquires Ooo Kraski Teks, one of the biggest players in the Russian decorative paints market, has been concluded. The necessary approvals from authorities and other conditions set out for finalising the transaction have been obtained. The debt-free purchase price has been set on USD 40 million.
The business operations of Kraski Teks were transferred to Tikkurila and the company is now a fully-owned subsidiary of Tikkurila. Together, Kraski Teks and Tikkurila will create a strong player in the rapidly expanding Russian decorative paints market, which has an estimated total volume of 500 million litres.
With this acquisition, Tikkurila raised its market share to 20% and reached a clear market- leading position. Kraski Teks is a perfect fit into Tikkurila’s portfolio from the strategic point of view: the company now has strong brands in all price segments.
In 2004, Kraski Teks had net sales of USD 70 million, and 800 permanent staff. Tikkurila had net sales of EUR 440 million during the same time period and 2,300 staff. After the transaction date, Tikkurila has four paint plants and a network of retail outlets in 100 towns and cities all over Russia.
Kemira’s paints and coatings business is today in the leading position in Finland, Sweden, the Baltic States and Russia. It has production in seven countries and a sales organisation of its own in six more countries. The main business areas include decorative paints, industrial wood coatings and industrial metal coatings.
Visa Pekkarinen, President, Paints and Coatings
Tel. +358 9 8577 2260, GSM 0400 504 910
Janno Paju, Tikkurila Oy, Vice President, Deco Eastern Europe
GSM +372 5330 1721
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