Red Spot Paint & Varnish Co., Inc., Evansville, IN, and Fujichem, Inc., a U.S. subsidiary of Fujikura Kasei (FKK), Tokyo, Japan, have entered into a stock purchase agreement whereby Fujichem will purchase 100% of the shares of Red Spot for $63.2 million. The transaction is expected to close on May 30th, 2008 and is subject to customary closing conditions. Red Spot, under new ownership, will continue to operate as Red Spot Paint & Varnish Co., Inc., a consolidated subsidiary of Fujichem.
With the globalization of the automotive business, both companies saw an advantage to combining into one entity. Red Spot’s employees, facilities and infrastructure in Evansville, IN, and Westland, MI, will continue to serve customers in North America and South America. Red Spot’s joint venture partners in Korea and the UK, as well as Red Spot’s licensees and customers in South America, Australia, Europe, Singapore and China, further broaden FKK’s global footprint to serve the global coatings for plastics coatings market.
Red Spot and FKK have a long and successful relationship beginning in 1972. The partners have successfully developed products and markets, and currently manufacture, sell,and service each other’s and their own technologies.