Tikkurila to acquire the operations of Serbian paint company Zorka Color
April 19, 2011 at 1.15 pm (CET+1)
Tikkurila has today on April 19, 2011 entered into an agreement to acquire the
business operations of Serbian paint company Zorka Color. The seller of the
operations to be acquired is Zorka Color d.o.o. and its subsidiaries, and the
buyer is Tikkurila Oyj and its subsidiaries. The acquisition will strengthen
Tikkurila's position, in accordance with the company's strategy, in Central
Eastern Europe and in the Balkans in particular.
According to Zorka Color, the company's revenue in 2010 was approximately EUR
16.2 million, operating profit (EBIT) EUR 1.0 million, and the average number of
employees some 150.
The completion of the acquisition requires an approval from the competition
authorities and the fulfillment of the other terms and conditions of the
transaction, which are estimated to be concluded by the end of June 2011. The
purchase price will beÂ specified before the closing, and the price will be
partly based on the future results of the business operations to be acquired.
Zorka Color's corporate and product brands, customer relationships, other
intangible rights, machinery and equipment, as well as the net working capital
tied into the business are included in the transaction. However, land, buildings
and interest-bearing debt of the target are not included in the acquisition.Â In
the acquisition, a long-term lease agreement was also signed, enabling Tikkurila
to lease a production facility located in Sabac, Serbia, from Zorka Color. Zorka
Color's employees will become Tikkurila's personnel.
In addition to Serbia, Zorka Color also operates in Macedonia, Bosnia-
Herzegovina, Montenegro, Croatia, and Kosovo. According to estimates by
Tikkurila's management, Zorka Color is one of the three largest players in
Serbia and the largest player in Macedonia in the decorative paints business.
Trademarks to be transferred to Tikkurila in the acquisition include, for
example, Linea, Decolux, Zoralux, and Mixline.
"The acquisition of Zorka Color's business operations strengthens Tikkurila's
position in Central Eastern Europe in accordance with our growth strategy.
Through the acquisition, our geographical area expands into the Balkans, which
is an interesting economic area. Zorka Color is a strong brand with a great
product portfolio. The company's market position is strong in particular in
Serbia," states Erkki JÃ¤rvinen, President and CEO of Tikkurila Oyj.
For further information, please contact:
Erkki JÃ¤rvinen, President and CEO
Phone +358 400 455 913,email@example.com
Tikkurila provides consumers, professionals and the industry with user-friendly
and environmentally sustainable solutions for protection and decoration.
Tikkurila is a strong regional player that aims to be the leading paint company
in the Nordic area and Eastern Europe including Russia. - Tikkurila inspires you
to color your life.
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Source: Tikkurila Oyj via Thomson Reuters ONE