Tikkurila has completed the acquisition of the business operations of Serbian paint company Zorka Color. The asset purchase agreement was signed in April 2011 and the business was transferred to Tikkurila on July 1, 2011.
The purchase price paid was approximately E12M. In addition, during the next four years Tikkurila will pay a possible additional purchase price, which will be based on the future results of the business operations acquired. The acquisition will strengthen Tikkurila’s position in Central Eastern Europe and in the Balkans in particular. In addition to Serbia, Zorka Color also operates in Macedonia, Bosnia-Herzegovina, Montenegro, Croatia and Kosovo.
According to Tikkurila’s management, Zorka Color is one of the three largest players in Serbia and the largest player in Macedonia in the decorative paints business. Trademarks to be transferred to Tikkurila include Linea, Decolux, Zoralux and Mixline. According to Zorka Color, the company’s revenue in 2010 was approximately E16.2M, operating profit (EBIT) E1M, and the average number of employees 150.