After the constructive negotiation process between shareholders of Helios Group - Ring International Holding, Franklin Templeton and GSO - and Kansai Paint Co. Ltd., one of world's top 10 paint manufacturers, the two peers agreed on the terms and conditions of a share purchase agreement ("SPA").
The SPA was signed on December 6 in Wien. Pursuant to the signed SPA Kansai Paint will acquire 100% of shares in Helios Coatings Group. The shares transactions will be completed in two to three months, after the approval of the Antithrust Authority. Signed SPA presents a milestone for a new development of Helios Group's companies as Helios will become the European center of Kansai Paint.
After the signing, David Kubala, one of the two CEO's of Helios Group, stated: "In last couple of remarkable and intensive years Helios Group consolidated the companies and production sites in 18 countries worldwide. It implemented a lot of synergies and strengthened R&D and innovation. That resulted in numerous new products that were introduced to the markets also in this year. Our brands and products were also renewed, upgraded and taken to new markets and to new customers. Helios is financially stable and healthy company with a focus on most demanding European markets. Therefore we also managed to stabilize the sales, despite the challenges, like the big one from the Russian market".
"None of this would be possible in such a short time, without good cooperation of all the excellent people we have in Helios. It is a truly great work to create a modern, international company that stands for professionalism and is today a respected player in European coating industry. Therefore we know that we are ready to make another big step ahead together, to take Helios on a new level. I am glad and proud to say that we have a new strategic shareholder Kansai Paint who is one of the top 10 companies in worlds coating industry. Kansai Paint will present a new development platform for Helios. Helios will become its European center for R&D, innovation and business development. That means we will continue introducing new products in future. Furthermore we will be able to penetrate into new markets like Asian and African, where Kansai Paint have strong presence."
The president of Kansai Paint, Hiroshi Ishino was very satisfied with the signing, stating: "For Kansai Paint, Helios Group with almost € 400 million turnover, represents a pillar in the very important market of Europe. We already had a strong presence in Asia, Africa and Middle East but very limited in Europe, so the purchase was made with a purpose to develop and expand the coating business in that continent. We are glad that we have found a company like Helios, with a compliant business philosophy and a great potential to become even more important in the European coating business. We want to develop Helios to be a strong European center of innovation, with the best knowledge and expertise in different segments of coatings", also stressed the president.
With the purchase of Helios Group, Kansai Paint intends to increase presence across the Europe and to consolidate the position as the premier coating company, also with Helios brands under its umbrella. Being under the wing of strategic owner Kansai Paint, presents various new opportunities to Helios and the benefits that will emerge out of the partnership that brought together the world's prominent brands:
- Helios Group will become the Kansai Paint's European centre of innovation, R&D, production and distribution. Kansai will support Helios to build a strong position in global procurement.
- Helios Group production programs and flagship brands will be kept and further developed within the existing organizational and management structure.
- Helios will introduce new products to the existing markets and will gain new access to the big markets of Asia and Africa. This also means more security for working places in Helios Group companies.
- With the synergies of Kansai knowledge centres, Helios's production practices and skills will be further developed. Kansai will offer a great deal of support and know-how about production systems and advanced technologies.
Hubert Culik the CEO of Helios Group at this point stressed: "Helios new strategic owner has a strong commitment to R&D and a long history of innovation in coating industry. A good synergy of research, technology, people, products and partners has made its position on the global market possible. Helios will now become a part of this efficient, wide-ranging research and development activities for new technologies and products adapted to market needs. The Kansai Paint Group in fact operates several research institutes and a research center. Their technology departments very successfully collaborate with those of the companies in the Group. That is also something we are looking forward to in Helios".
For further information: www.kansai.com, www.helios-group.eu