Dulux backs takeover bid
THE nation’s biggest paint maker, Dulux, has received a $3.8 billion takeover offer from a Japanese paint giant.
DuluxGroup has announced its board was unanimously backing the deal which is priced at a 28 per cent premium to the manufacturer’s closing price of $7.67 on Tuesday.
Nippon is offering $9.80 per share in cash inclusive of a 15 cent per share interim dividend, intended to be paid by its Melbourne-based target.
Dulux said the deal was not expected to change the company’s name in Australia and New Zealand, or its leadership, business portfolio, manufacturing and operations.
Dulux chairman Graeme Liebelt said he was confident the new partnership would benefit both companies.
“The board has carefully considered the strategic options available to DuluxGroup to maximise value, including continuing to pursue domestic and global growth as a standalone company, and we have unanimously concluded that the transaction with Nippon is in the best interests of our shareholders,” Mr Liebelt said.
Nippon chief executive Tetsushi Tado said it would be business as usual for Dulux if the deal goes through.
“DuluxGroup will still be DuluxGroup,” he said.
“Nippon intends to maintain the legacy developed by DuluxGroup and facilitate DuluxGroup’s existing vision by leveraging the resources of the broader Nippon platform.”
Dulux’s origins date to 1918 in Sydney when British Australian Lead Manufacturers bought Australasian United Paints. BALM Paints changed its name to Dulux in 1971.
Today the Australian and New Zealand businesses sell Dulux paints and coatings, Selley’s and Parchem sealants, B&D Group garage doors and Lincoln Sentry hardware. In November Dulux announced it had lifted its full-year profit 5.4 per cent to $150.7 million.