Tikkurila has acquired the business operations of Serbian paint company Zorka Color from Zorka Color d.o.o. and its subsidiaries. The acquisition is meant to strengthen Tikkurila's position in Central Eastern Europe and in the Balkans in particular.
Zorka Color's revenues in 2010 were approximately €16.2 million with an operating profit (EBIT) of €1.0 million. The paint maker employs approximately 150 people.
The acquisition is expected to be complete by the end of June 2011. The purchase price will be specified before the closing, and the price will be partly based on the future results of the business operations to be acquired.
Zorka Color's corporate and product brands, customer relationships, other intangible rights, machinery and equipment, as well as the net working capital tied into the business are included in the transaction. However, land, buildings and interest-bearing debt are not included in the acquisition. In the acquisition, a long-term lease agreement was also signed, enabling Tikkurila to lease a production facility located in Sabac, Serbia, from Zorka Color. Zorka Color's employees will become Tikkurila's personnel.
In addition to Serbia, Zorka Color also operates in Macedonia, Bosnia-Herzegovina, Montenegro, Croatia and Kosovo. According to estimates by Tikkurila's management, Zorka Color is one of the three largest players in Serbia and the largest player in Macedonia in the decorative paints business. Trademarks to be transferred to Tikkurila in the acquisition include, for example, Linea, Decolux, Zoralux and Mixline.