This article is on the acquisition of shares in a Malaysian manufacturer of paint-related products by Nippon Paint Group (“Nippon Paint”), which was announced on March 16, 2021.
Established 140 years ago, Nippon Paint is one of Japan’s leading comprehensive paint manufacturers, with operations in 29 countries and regions, and a total of 34,000 employees in the group. The company operates in Japan, Asia, America, Europe, and Oceania, and has more than 100 group companies, with overseas sales accounting for 70% of total sales. Its products are diverse, including automobiles, buildings, bridges and other large structures, bullet trains, large machinery, ships, and office supplies.
According to Nippon Paint’s press release dated March 16, 2021, Vital Technical, established in 2002, is a leading manufacturer of sealants (Note 1) and adhesives with the largest market share in Malaysia. The company has four production sites and operates in more than 70 countries around the world, mainly in Southeast Asia, with sales revenue of approximately 170 million Malaysian Ringgit (approximately 4.5 billion yen) in fiscal 2020. Nippon Paint has acquired a 75% stake in Vital Technical through Nippon Paint Malaysia.
According to Nippon Paint’s press release, “In addition to the acquisition of an excellent management team with expertise and knowledge of SAF (Sealants, Adhesives & Fillers), the new company aims to accelerate the growth of the paint-related business by increasing mutual sales among Nippon Paint and Vital Technical and by expanding the product line-up including Selleys and to improve efficiency by expanding production capacity and coordinating raw material procurement.”