Nippon Paint buys local Betek for $245 mln

ISTANBUL

Japan-based Nippon Paint Holdings has announced that it completed the acquisition of local Betek Boya, the owner of well-known paint brand Filli Boya.

“The consideration for the Betek Group shares is finally determined as 1.4 billion Turkish Liras [some $245 million] and the enterprise value of Betek Group is 2.39 billion liras,” the Japanese company said in a statement released on July 11.

After the completion of the transaction and following the proper procedures, Nippon Paint will provide a capital increase to Betek for the purpose of refinancing of the existing debt.

Betek group, founded in 1988, is a leading company that has the top share in the decorative paint market in Turkey. Its major brands Filli Boya and Fawori have a large market share and a high brand-recognition level.

The company has 10 warehouses and about 1,500 dealers. It has five facilities in Turkey and another one in Egypt.

Revenues of Betek Boya increased to 1.75 billion liras in 2018 from 1.5 billion liras in the preceding year.

By acquiring Betek, Nippon Paint Holding is set to achieve a No. 1 share in Turkey in addition to Asia.

Turkey’s decorative paint market is the fifth largest in Europe, the Japanese company says in a presentation on its website.

According to a January report by Deloitte Turkey, the annual volume of disclosed mergers and acquisitions (M&A) transaction in Turkey rose 17 percent to reach $12 billion in 2018.

Foreign investors made the highest contribution since 2015, generating 63 percent of the total annual deal volume, the report noted.