PPG Industries has agreed to purchase Dyrup A/S of Copenhagen, Denmark, from public holding company Monberg & Thorsen, for approximately €135 million ($200 million). The deal is expected to close in the third quarter.
Dyrup produces architectural coatings, in particular wood stains, and specialty products with 2010 sales of approximately €190 million ($270 million). It employs roughly 950 people and operates six manufacturing facilities in Europe. Its portfolio of brands includes Bondex, Gori and Xylophene, which are sold primarily in Denmark, France, Germany, Portugal, Poland and Spain through professional and DIY channels.
“The acquisition of Dyrup would expand PPG’s European architectural coatings business by extending our geographic presence in the region and by bolstering our wood care product offerings, an end-user segment where we today have a modest presence,” said Pierre-Marie De Leener, PPG executive vice president, architectural coatings, EMEA, and president, PPG Europe.
De Leener said that anticipated synergies, including improved raw material procurement, are expected to result in Dyrup achieving EBITDA margins in the near term that will be at a level consistent with PPG’s existing European architectural business. “Dyrup’s operations and sales channels would be a great complementary fit with PPG’s structure,” he said. “The transaction will expand PPG’s growth in several key countries, including Poland, France and Denmark, and further establish PPG in several regions where we have limited or no architectural coatings presence, especially in Portugal, Spain and Germany."