Kansai Paint Company has entered into an agreement to sell its Africa business to Akzo Nobel N.V., a global paints and coatings company, according to a statement from Kansai.
The sale is subject to the regulatory approvals of the relevant authorities and the transaction is expected to be completed in the course of 2023.
Kunishi Mori, Kansai Paint’s president said they are convinced that “AkzoNobel is the best owner as AkzoNobel considers the decorative paints business as a core business and will therefore be able to unlock the full potential of the business.”
AkzoNobel has a history going back to 1646 and is listed on the Euronext Amsterdam. The company is active in more than 150 countries with about 33,000 employees globally and generated sales of approximately € 9.6 billion (¥ 1.3 trillion) in 2021.
AkzoNobel operates various paints and coatings businesses globally including African countries like South Africa and Kenya, etc.
The company has also contributed significantly to social sustainability in African regions for a long time through various initiatives such as development and sales of sustainable products as well as social investment in communities, the SOS Children Village being one of many projects.
“Acquiring Kansai Paint’s activities in the region will help us to further expand our paints and coatings business in Africa and provide a strong platform for future growth. Kansai Paint shares our commitment to innovation and sustainability, and we look forward to combining our expertise, which will result in a wider range of innovative products and more sustainable solutions for our customers,” said Thierry Vanlancker, chief executive officer and chairman of the board of AkzoNobel.
Kansai Plascon said businesses across Africa but specifically in Uganda, Kenya, Tanzania, Zanzibar, and Burundi the agreement is an opportunity to further drive growth.
“We have achieved steady growth under the management of Kansai Paint, and weathered market uncertainty plus volatility even during the Covid-19 pandemic. We are grateful for the unwavering support offered by Kansai Paint. Moving forward, we believe that AkzoNobel will be an owner who elevates our businesses to the next level as AkzoNobel is willing to invest in ESG, is committed to innovation, workforce development and broader career opportunities as well as the long-term success of its paint business in Africa,” said Arvind Shekhawat, chief executive officer of Kansai Plascon East Africa.
Commenting on the deal, Jan-Piet van Kesteren, Managing Director of AkzoNobel’s Decorative Paints Europe, Middle East and Africa business, said: “Kansai Paint Africa is a beautiful addition to our existing strong business which spans across 9 countries in the region. The acquisition will complement our portfolio of leading positions in attractive markets and world class brands in Africa, while driving growth in relevant emerging markets. It also offers us the unique opportunity to welcome another strong brand with a heritage of more than 100 years and a wide distribution network.”
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