Acquisition is one of major deals in the region this year

Ex-Lands acting CSFred Matian'gi(c), PS Mariamu Maay(l) and Sadolin Paints MD Jamil Virjee at Sadolin at KICC (PHOTO:  JENIPHER WACHIE)

NAIROBI, KENYA: Japanese paint maker Kansai Plascon Africa Limited has acquired Sadolin paints for Sh10 billion.

The firm that is a subsidiary of Kansai Paint Company will now be running Sadolin paints operations in Kenya and Uganda.

"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 with new capabilities, access to technology and a know-how, which is key in continuing to drive growth for this brand," said Kansai Plascon managing director Jamil Virjee in statement.

Mr Virjee also added that the acquisition will see no changes in top management or any other positions at Sadolin.

The company will continue to operate as optimally as it has been with the current employee base.

Virjee also emphasized that the acquisition will see even better and more efficient output by the paint company, as it will benefit from new and improved technologies from Kansai Paint, a top ten coatings company in the world.

Speaking about the rationale for the acquisition, President of Kansai Plascon East Africa Gary van der Merwe said that the acquisition signals Kansai Plascon's latest attempts at global expansion.

"East Africa is one of the fastest growing regions on the continent, with a rapidly emerging middle class, increased spending power and growing urbanisation. This is, therefore, a good time to launch into a market that is in need of our wide range of products to enhance their lifestyles, while also increasing our global footprint," said Mr Merwe.

Merwe also hinted that Kansai will be phasing out some products with the intention of introducing new ones from Japan. This will be one of the Steps the new managers will be taking as they restructure Sadolin's operations.

"After we have consolidated the operations, we shall be introducing some of our products that are not yet manufactured here to suit the ever evolving needs and trends of the market," Merwe said.

Apart from Kenya, Kansai Plascon Africa Limited has also a foothold in South Africa where its brand trades.