Akzo Nobel is set to become one of the leading suppliers to the Ukrainian decorative paint market after signing an agreement to acquire a 51% controlling share in the coatings activities of Khimrezerv.
Headquartered in the Ukrainian capital Kiev, Khimrezerv's paint business employs 225 people and manufactures and sells waterborne and solvent-borne decorative coatings.
"This deal is further proof of Akzo Nobel's commitment to build positions in attractive emerging markets," said CEO Hans Wijers, who is also the board member responsible for coatings.
Founded in 1993, Khimrezerv began paint production in 1998 and is currently one of the Ukraine's top five decorative coatings manufacturers, operating a plant in Kirovograd, 350 kilometers from Kiev.
"Taking a majority stake in Khimrezerv's coatings activities will not only boost our existing market presence in the Ukraine, where we already have a good position in the premium sector, but will also create a solid platform for further growth in other areas, particularly the rapidly growing mid-range segment," added Jan Andersson, general manager of Akzo Nobel's decorative coatings international business.
The transaction, which is subject to regulatory approvals, marks the latest in a series of deals involving Akzo Nobel Decorative Coatings, with acquisition agreements having also been signed in China, Switzerland and Germany during recent months.