Kansai Nerolac To Enter Into Bangladesh By Acquiring RAK Paints
Kansai Nerolac Paints Limited has entered into a Share Purchase Agreement (SPA) to acquire 55% equity stake in RAK Paints Limited, Bangladesh as on the Closing Date ( i.e. the day on which the transaction would be consummated) for a total consideration of Bangladeshi Taka (BDT) 57.26 crores (approximately INR 45.81 crores). This is subject to adjustments for borrowings, working capital and fixed assets as at the Closing Date.
RAK Paints Limited, incorporated in the year 2009, is one of the established paint companies in Bangladesh having a diverse product range encompassing decorative paints (includes water based, solvent based, primers and cement paints) and industrial paints (includes marine, primer and epoxy).
Commenting on the acquisition, Mr H.M. Bharuka, Vice Chairman and Managing Director, Kansai Nerolac Paints Limited said that, "With this investment in RAK Paints Limited Bangladesh, Kansai Nerolac aims to increase its footprint in the SAARC countries. We believe that with our technological support, RAK Paints would grow very fast and would become a significant player in the Bangladesh paint industry. With many 2 Wheeler companies exploring setting up of a plant in Bangladesh, going forward even auto and ARF market will also become significant which Kansai Nerolac would like to explore."