Nippon Paint Completes Acquisition of Majority Stake in European Paint Peripheral Products Manufacturer NPT srl

On July 6th, Nippon Paint Holdings Co., Ltd. ("Nippon Paint" or "the Company") announced that it has completed the acquisition of 51% of the shares of NPT srl, a European paint peripheral products manufacturer, through its subsidiary DuluxGroup Limited established in the UK. Nippon Paint expects this acquisition to have a relatively small impact on the company's operating performance.

On February 6th, 2023, Nippon Paint released a notice regarding the acquisition of shares of NPT srl, a European paint peripheral products manufacturer, by its subsidiary. NPT is an Italian enterprise engaged in the manufacturing and sales of sealants, adhesives, and other products.

According to data, NPT was established in 1993 and is affiliated with the 3G Group. The company mainly engages in the manufacturing and sales of sealants and adhesives, with excellent technology and a strong brand in sealants and adhesives, as well as a well-funded European manufacturing base and extensive distribution network. The company had a sales revenue of approximately €53 million (about RMB 420 million) in the fiscal year ending in December 2021 and exported to more than 60 countries.

Regarding the reason for the acquisition, Nippon Paint stated that the company has always aimed to maximize shareholder value as its only management mission, and by accumulating strong brands and excellent talent through existing businesses and active mergers and acquisitions, it pursues continuous growth under an "asset portfolio" model.

In addition, Nippon Paint is pushing forward a strategy to expand its business beyond the paint and coating field in the medium to long term. According to market research firm Fortune Business Insights, the global market size of SAF (Sealants, Adhesives, and Fillers) in the paint peripheral field is estimated to be $60 billion (about RMB 430 billion), and Nippon Paint's goal is to establish a solid foundation in each business area and region to expand market share.

While further establishing its presence in the European market, Nippon Paint will leverage the group's extensive sales network in the Asia region and insights from Selleys, the paint peripheral brand owned by DuluxGroup in Australia and New Zealand, to create broader growth opportunities. This acquisition is expected to have a positive impact on the company's EPS from the first year.