November, 21. 2005
Kemira: Tikkurila to become the leading paint company in Russia
In line with the Group's strategy, Kemira strengthens its market position in the Eastern European paints and coatings business through the acquisition of OOO KRASKI TEKS paints company in Russia. Through this acquisition Tikkurila, the company responsible for the paints and coatings business of the Finland-based chemicals company Kemira, will become the leading paints company in Russia. The net sales of the company totalled USD 70 million in 2004. The company employs 800 persons on a permanent basis. The agreement is subject to final approval by the relevant authorities and other conditions set out for finalising the transaction. The debt-free purchase price has been set on USD 40 million.
Tikkurila will strengthen its position in the Russian paint market, which has a very strong growth. This acquisition will double our market share in decorative paints and make Tikkurila the clear market leader. We will have four paint plants and a network of retail outlets in 100 towns and cities, says Visa Pekkarinen, President of Kemira's Paints and Coatings business. KRASKI TEKS is a perfect fit into our portfolio from the strategic point of view: We will have strong brands in all price segments.
KRASKI TEKS has a 10% share of the Russian decorative paints market while Tikkurila currently has some 9 %. TEKS has experienced strong growth during the past few years and it is one of the strongest local players in the decorative paints market with an estimated total volume of some 500 million litres.
TEKS was established in 1994. The company has paint production in St Petersburg and Stary Oskol in Western Russia, and a central warehouse in Chelyabinsk making KRASKI TEKS one of the largest paint companies in Russia today. The extensive range consists of both water-borne and solvent-borne paints, wood stains and putties.
Tikkurila has been an active player in Russia and the former Soviet Union since the mid-seventies. In 1995, paint production was started in St Petersburg and in Moscow in 2000, the same year when also a sales company and a central warehouse were established in Novosibirsk, centre of Siberia. Tikkurila is today the best-known western paint brand in Russia. The range covers all the products made in Finland (Tikkurila) and a smaller range of locally produced paints (Finncolor).
Tikkurila is the leading paint company in Finland, Sweden, The Baltic Countries 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 finishes and paints for the metal industry. The paints and coatings business had net sales of EUR 440 million and 2,300 staff in 2004.
For further information:
Visa Pekkarinen, President, Paints and Coatings
Tel. +358 9 8577 2260, GSM 0400 504 910
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