Tikkurila is strengthening its market position in Eastern Europe by acquiring OOO Kraski Teks, a Russian paint company. The debt-free purchase price is $40 million, according to Tikkurila.
Teks, established in 1994, has production facilities in St. Petersburg and Stary Oskol in Western Russia, and a central warehouse in Chelyabinsk. It’s range includes both water- and solventborne paint, wood stains and putties. The firm’s 2004 sales were approximately $70 million.
Kraski Teks has a 10% share of the Russian decorative paints market while Tikkurila currently has approximately 9 %.
“Tikkurila will strengthen its position in the Russian paint market, which has avery strong growth. This acquisition will double our market share in decorative paints and make Tikkurila the clear market leader. We will have four paint plants and a network of retail outlets in 100 towns and cities,” said Visa Pekkarinen, president, Tikkurila Oy. “Kraski Teks is a perfect fit into our portfolio from the strategic point of view: we will have strong brands in all price segments.”
Tikkurila has been active in Russia and the former Soviet Union since the mid-1970s, and it started, paint production in St. Petersburg in 1995 and in Moscow in 2000. It also has a sales company and a central warehouse in Novosibirsk, Siberia.