Kampala, Uganda — Following their binding agreement signed in February this year, Kansai Plascon Africa Limited, a subsidiary of Japan based Kansai Paint Co, has concluded its agreement to purchase the Sadolin Paints operations in Uganda, Kenya, Tanzania, Zanzibar and Burundi.
Kansai Paint is a global company with major operations in Japan, China, Asia, the Middle East, Europe and Africa. Its product offering covers the decorative, industrial, protective coatings and automotive segment. It has research and development facilities in Japan, India and South Africa.
"We are thrilled at this acquisition. Through it, we will be able to tap into Kansai's strong brand heritage, global technical capability, and trusted performance, providing us new capabilities, access to technology and knowhow which is very key in continuing to drive growth for this brand," said Sadolin's Managing Director Chris Nugent during a press briefing at the Plascon Factory in Namanve.
Speaking about the rationale for the acquisition Wim Bramer, MD Kansai Plascon East Africa said that this acquisition signals Kansai Plascon's commitment to global expansion. "East Africa is one of the fastest growing regions on the continent, with a rapidly emerging middle class, increased spending power, growing urbanization therefore, this is a good time to launch into a market that will need our wide range of products to enhance their lifestyles while also increasing our global footprint."
The acquisition will see no changes in top management and any other positions at Sadolin. The company will continue to operate as optimally as it has been with the current employee base.
Chris Nugent who stays on as Managing Director says this acquisition will see even better and more efficient output by the paint company which will benefit from new and improved technologies from Kansai Paint which is a top ten coatings company in the world.
Since establishment in 1963 in Uganda, Sadolin Paints has grown to become the country's largest paint manufacturer, boasting greater than 50% of the market share. The company manufactures its product line locally and recently set up a $10 million world class plant in Namanve.
Chris Nugent reassures customers that this move will have no impact on current operations but comes with more streamlined operations to serve customers better, more efficiently with the quality product they have come to expect.
"All our local dealerships, stores and shops will remain open to serve you at the same great price you have enjoyed over the years. Over the next few months, as we complete the transition, we shall subject to our contractual commitments, phase out the Sadolin brand from the shelves and encourage our customers to ask for Plascon from their local dealer."
Noting that acquisitions and mergers come with uncertainty both from a human resources perspective and an operations perspective, Wim Bramer commented that since Sadolin as a business was already operating impressively, the strategic input would be to enhance and plug into the existing operations to improve efficacy.
"We will only work to expand the already existing high quality technology that we have found in place. Our commitment remains to investing in cutting-edge technology to provide our customers with the best quality paint on the market," he said.