Kemira and AB Wilhelm Becker, part of the Swedish Lindéngruppen AB, have concluded an agreement on the transfer to the Finnish Kemira Group of Alcro-Beckers AB, the decorative paints business of AB Wilhelm Becker. Alcro-Beckers is the biggest producer of decorative paints in Sweden with net sales of EUR 196 million in 1999 and a personnel of 1,145.
Alcro-Beckers' biggest production facilities are located in Sweden (Stockholm) and Poland (Debica). The company also operates in Denmark, Norway, Germany and Finland.
Since 1994, Tikkurila and Alcro-Beckers are operating the joint venture Baltic Color in the Baltic states. The deal covers Alcro-Beckers' holding of 50 per cent in this venture.
The estimated net sales of the business purchased totals about EUR 205 million in terms of figures for the year 2000. The purchase price, to be specified on the basis of the financial statement for 2000, will be about EUR 200 million. Alcro-Beckers will form an independent part of the paints business of Kemira.
According to plans, the business sold will be transferred to the new owner as of 1 January 2001. The agreement is subject to final approval by the relevant competition authorities.
The parties to the agreement expect the merger to improve the operational environment for both Alcro-Beckers and Tikkurila. The joining together of businesses will make it possible to use three strong brands - Alcro, Becker and Tikkurila - in the highly competitive paint market.
The decorative paints business formed by the companies will be the biggest in the Nordic countries and among the biggest in Europe.
Tikkurila's net sales are estimated at EUR 245 million for 2000, excluding the sale of the tinting business. Tikkurila employs a personnel of about 1,550. Alcro-Beckers has a staff of about 1,145, of whom about 485 in Sweden. The agreement will not have an impact on the employment of Alcro-Beckers' personnel.