Kansai Plascon acquires Sadolin Paints deal valued at USD 100.0 mn

Kansai Plascon Africa Limited, a subsidiary of Japan based Kansai Paint Co, has concluded its agreement to purchase the Sadolin Paints operations in Uganda, Tanzania and Kenya for a cost of over USD100 million.

The transaction is valued at USD 100.0 mn hence valuing the company at USD 111.1 mn (Kshs 14.5 bn). The remaining 10.0 percent stake is held by undisclosed local investors.

The transaction will see Kansai Plascon Africa Limited take up the operations of Sadolin Paint in Kenya, Uganda, Tanzania and Rwanda. The acquisition will:  drive innovation in Sadolin Paints as Plascon has invested heavily in research and development facilities, catering for development across all products, with these facilities located in Japan, India and South Africa, and assist Plascon implement its expansion strategy in Africa by increasing their presence in Africa through the acquisition of local African paint brands, as Sadolin Group is amongst the largest producer of paint in East Africa.

Kansai Plascon Kenya Managing Director Jamil Virjee said, “Through it, we will be able to tap into Kansai’s strong brand heritage, global technical capability, and trusted performance, providing us with new capabilities, access to technology and a know-how, which is key in continuing to drive growth for this brand. East Africa is one of the fastest growing regions on the continent, with a rapidly emerging middle class, increased spending power and growing urbanization.”