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April 27, 2006
By: Tim Wright
Akzo Nobel is continuing to build its position in Central Europe having signed an agreement to acquire Balakom a.s., one of the leading paint companies in the Czech Republic. Based in Opava in the Czech Republic, the purchase of Balakom will increase Akzo Nobel’s domestic market share and provide a solid base for further expansion. “Strengthening the presence of our coatings activities in Central Europe is a key element of the company’s global expansion strategy and this deal makes sound business sense on a number of levels,” said Akzo Nobel CEO Hans Wijers. “Balakom is a respected company with a long and proud history in the coatings industry and its sound technological base has resulted in the development of a number of well known brands,” Wijers continued. “There is an obvious strategic fit which will provide the necessary momentum for us to grow our decorative coatings business in what is a highly attractive region.” Christian Seidler, Balakom’s general manager, said, “We are excited about joining the world’s largest coatings supplier. Balakom has a comprehensive responsible care program and in that respect we will also fit nicely into Akzo Nobel.” Balakom, which has 183 employees, produces paints, varnishes, enamels and lacquers, as well as powder coatings. Sales, which are mainly in the domestic market, totaled €16 million in 2005.
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