Kansai Plascon Africa Limited (KPAL), a subsidiary of Japan-based Kansai Paint company, has acquired the entire stake of Sadolin Paints in Uganda and other East African countries.
Sadolin’s managing director Chris Nugent said the company was excited about the acquisition, and that this would position it on a higher international level.
“We are thrilled at the acquisition. Through it, we will be able to tap into Kansai’s strong brand heritage, global technical capacity, and trusted performance; providing us new capabilities, access to technology and knowhow, which is very key in continuing to drive growth for this brand,” Nugent said.
Kansai Paint is a global company with operations in Japan, China, Asia, the Middle East, Europe and Africa, according to a company statement. Explaining the rationale behind the acquisition, Wim Bramer, the managing director, Plascon East Africa, said the acquisition signals Kansai Plascon's commitment to global expansion.
“East Africa is one of the fastest-growing regions in the continent, with a rapidly emerging middle-class, increased spending power, and growing urbanization. Therefore, this is a good time to launch into a market that will need our wide range of products... while also increasing our global footprint,” said Bramer.
Kansai said the acquisition will see no changes in top management and that Sadolin will continue to operate normally. Nugent, who will stay as managing director, says the acquisition will see even better and more efficient output, tapping into new technologies.
Since its establishment in Uganda in 1963, Sadolin Paints has grown to be- come the country’s largest paint manufacturer, boasting greater than 50 per cent of the market share, according to the company. The company manufactures its products locally and recently set up a $10 million factory in Namanve.
Nugent reassured customers that the move will have no impact on current operations but comes with more streamlined operations to serve customers better and efficiently.
“All our local dealerships, stores and shops will remain open to serve you at the same price you have enjoyed over the years. Over the next few months, as we complete the transition, we shall subject you to our contractual commitments, phase out the Sadolin brand from the shelves and encourage our customers to ask for Plascon from their local dealers,” he said.
“We will only work to expand the already existing high-quality technology that we have found in place. Our commitment remains investing in cutting-edge technology to provide our customers with the best-quality paint on the market,” Bramer said.