Kansai Paint Co., Ltd. (Kansai Paint) has entered into an agreement to sell its Africa business to Akzo Nobel N.V. (‘AkzoNobel’), a global paints and coatings company.
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.
According to Mr Kunishi Mori, the Kansai Paint’s president, they are convinced that AkzoNobel is the best since it considers the decorative paints business as a core business and will therefore be able to unlock the full potential of the business, thereby contributing to the development of the African economy.
AkzoNobel has a history dating 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.
As per its strategy dubbed ‘Grow & Deliver’, AkzoNobel operates various paints and coatings businesses globally including African countries such as South Africa and Kenya, among others.
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.
Thierry Vanlancker, the Chief Executive Officer and Chairman of the Board of AkzoNobel shared that acquiring Kansai Paint’s activities in the region will help them to further expand their 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,” he said.
He added that for the Kansai Plascon businesses across Africa but specifically in Uganda, Kenya, Tanzania, Zanzibar, and Burundi this agreement is an opportunity to further drive their growth.
Arvind Shekhawat, Chief Executive Officer of Kansai Plascon East Africa explained that they have achieved steady growth under the management of Kansai Paint, and weathered market uncertainty plus volatility even during the Covid-19 pandemic.
He shared that they are grateful for the unwavering support offered by Kansai Paint and moving forward, they believe that AkzoNobel will be an owner who elevates their 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.
“Plascon has the largest market share in Uganda and as the leader across East Africa is well positioned to take the step up to the next level with AkzoNobel. The next journey will be an exciting one as we develop strategies, products, services and brands that will deliver further value to the East African market in a sustainable and responsible way.”
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 their existing strong business which spans across nine 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,” he said adding that it also offers them a unique opportunity to welcome another strong brand with a heritage of more than 100 years and a wide distribution network.