The hottest Nippon acquisition of Dulux may be jus

2022-08-24
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Nippon's acquisition of Dulux may only be the beginning

Nippon's acquisition of Dulux may only be the beginning

April 19, 2019

recently, Nippon Paint announced the acquisition of Dulux Australia for a $3.8 billion. It is understood that Nippon paints PS as the external force material at the yield point s and agrees to acquire Dulux group at a $9.80 per share; The transaction valued the Australian company at a $3.8 billion. Dulux group closed at a $7.67 on Tuesday, meaning a premium of 28% for Chinese coatings

first of all, learn about the "true face" of Dulux Australia.

maybe when you see this news, you will be surprised to ask: did Nippon buy Dulux? No, because Dulux is not a Dulux brand under AkzoNobel, but Dulux g further reduces the cost group. Dulux group is a paint, coating, sealant and adhesive company in Australia and New Zealand. Its main end market is focused on residential areas, focusing on the maintenance and improvement of existing residential buildings. On May 28th, 1918, balm coating was incorporated in New South Wales, Australia, which began a 100 year development process until today's Dulux group. In 1933, balm obtained the right to use the registered trademark of Dulux (Dulux) in Australia, and introduced the latest advanced coating technology from DuPont. Dulux Australia has long been the largest paint manufacturer in Australia. In the "2018 top companies sales list of the world's top paint manufacturers" (2016 top companies), published by American Coatings World magazine, Dulux Australia ranked 15th with a sales volume of $939 million

talk about this acquisition

now let's return to the content of this acquisition. The acquisition price of Nippon Paint is a $9.80 per share, 27.8% higher than the closing price of Dulux on Tuesday. The announcement also showed that the equity value of Dulux Australia is $3.8 billion, and the implied enterprise value is $4.2 billion. This time, the two world-class companies choose to cooperate together, which is of leading significance for the development of the industry. Dulux said the acquisition would provide the company with "more opportunities" to achieve its growth ambitions. The board of directors of Dulux group said that in the absence of priority proposals, it concluded that the plan was in the best interests of Dulux group shareholders according to the constraints of the independent expert's report, and Dulux group unanimously recommended that shareholders vote for the plan. Shareholders of the two companies will vote on this transaction in July. Driven by this news, Dulux's share price soared by 27.6% on Wednesday

Dulux Australia has a leading and iconic brand and world-class manufacturing business equipment. Due to the dissipative properties of elastomers, the merger of Dole group and Japan will provide a broader market. According to the financial report of Dulux group in 2018, Dulux achieved a sales revenue of US $1.84 billion in 2018, up 3.3% year-on-year; Excluding the stripped Chinese coating business, the sales revenue increased by 4.5%; EBITDA of US $257.7 million; EBIT increased by 4.2% year-on-year to US $232.2 million; After tax net profit increased by 5.4% year-on-year to $150.7 million. After Nippon acquired Dulux Australia, on the one hand, it can take advantage of Dulux Australia's original brand influence and channel market to occupy part of the market share; on the other hand, it can integrate Dulux Australia's operation experience and gradually layout the global market in the future

in fact, I'm not very surprised about Nippon's acquisition of Dulux group in Australia. After all, in recent years, Nippon has made many acquisitions. Just list the acquisitions of Nippon in the past three years

on September 7, 2016, Nippon China and changrunfa paint group, a well-known enterprise in China's furniture paint industry, reached a strategic cooperation agreement. The two sides issued a joint statement saying that the 6:4 equity distribution formed a strategic cooperation. It is reported that long run fat, founded in 1999, is a large enterprise specializing in the R & D, production and sales of wood coatings. It is also a well-known enterprise of Chinese furniture paint. Its headquarters are located in Shenzhen, Huizhou, Beijing, Shanghai, Chengdu and other places. It has four modern paint/resin production bases and many sales and service companies including Shunde, Dongguan, Jinan, Harbin, Xi'an and so on. After this cooperation, the two sides will work together to promote the innovation and development of China's furniture paint market

in July 2017, changrunfa paint, a subsidiary of Nippon, acquired more than 90% of the shares of Zibo China Resources and became the de facto controlling shareholder. The acquisition time was in July 2017. Zibo China Resources paint technology Co., Ltd. is engaged in the production, technology development and sales of polyester polyurethane wood paint, synthetic resin lotion inner (outer) wall paint, water-based wood paint and water-based paint. Its brands include chiaos and Jiade Baoman. The acquisition of Zibo China Resources by RT Mart may be an important strategy for Nippon to lay out water-based and UV wood paint

on November 29, 2018, media reported that Nippon Paint HD of Japan would acquire two coating companies in China as early as the beginning of 2019, namely "Shanghai Mecca coating Co., Ltd." and "Mecca coating (Nantong) Co., Ltd.". Nippon will acquire 70% of the shares of the two companies through its Chinese subsidiaries. The purchase amount has not been announced, and the total sales of the two companies are about 13.5 billion yen

in general, there is little trace left on the surface during the experiment. In other words, Nippon will further acquire coatings from all over the country in the future, expand its product portfolio, acquire new markets by promoting mergers and acquisitions, and accelerate the development of new markets... Nippon is imperative to merge and acquire all over the country, and the arrow is on the string

source: zhoudongcheng coating Market

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