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PRODUCERS continue the repositioning strategies on the Romanian market
English Section Publicat de Elena Icleanu 18 Nov 2016 15:13
Mergers, the strategies used by large companies to strengthen their activities in times of crisis, continued also in the third quarter of 2016, with the takeover of the Romanian architectural paints producer Deutek SA by North American group PPG Industries. Another transaction, that took place recently, refers to the merger between the German HVAC group DencoHappel (represented in Romania by DencoHappel Romania, former GEA Klimatechnik) and Fläkt Woods, German provider of solutions for the ventilation and fire protection systems production. Regarding the first transaction, PPG Industries announced recently that it has reached an agreement of understanding with the investment fund Emerging Europe Accession Fund (EEAF)/ Axxess Capital to takeover Deutek Romania, leader of the local paint market. The transaction will be completed in the first quarter of 2017, after obtaining approvals from competition authorities in Romania. The transaction value estimated by the international media is about 40-50 million euro, but PPG representatives said, in an official statement, that the financial terms were not disclosed. Active in Romania since 1993, Deutek SA owns a production unit in Bucharest, and the brands Danke, Oskar and Superweiss. Company's products are sold in over 120 DIY stores and about 3,500 other centers belonging to independent retailers in Romania. In 2015, the company reported a turnover of 30 million euro. "Deutek SA is a well-managed business, with customer service and portfolio already famous in Romania. Following the acquisition, we add to the PPG portfolio brands with huge potential for growth and, also, we expand in Romania, where, currently, are being represented by a division of architectural coating systems", said Jean-Marie Greindl, president of PPG EMEA (Europe, Middle East and Africa).
 
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