Citation
(2008), "ICI to Buy Dulux from AECI of South Africa", Pigment & Resin Technology, Vol. 37 No. 1. https://doi.org/10.1108/prt.2008.12937aab.020
Publisher
:Emerald Group Publishing Limited
Copyright © 2008, Emerald Group Publishing Limited
ICI to Buy Dulux from AECI of South Africa
Industry news
ICI to Buy Dulux from AECI of South Africa
ICI has reached an agreement to buy the Dulux business from South African corporation AECI for $52 million in cash. In addition to buying the Dulux assets in South Africa, ICI is acquiring AECI's shares in the Dulux subsidiaries in Botswana, Zambia, Swaziland, Malawi and Namibia. Completion is expected in the second half of 2007, subject to approval by the regulatory authorities. Dulux is one of the leading decorative paints brands in the growing South African market, where an expanding economy and a rapidly growing construction market have contributed to Dulux Pty's continuing sales growth. In the year ended 2006, Dulux Pty sales grew 19 percent to $55.3 million, trading profits were S5.0 million, net assets were $17.8 million and the business employed 650 people, including 400 in South Africa. ICI Chief Executive John McAdam said: “Dulux gives ICI a strong presence in southern Africa. We are delighted with this acquisition as it is absolutely consistent with our focus on fast growing developing markets.”