CAP PLC, Portland Paint Plan Merger To Capture Emerging Growth Opportunities

Two Nigerian Paint giants CAP PLC, Portland Paint Plan Merger To Capture Emerging Growth Opportunities and Portland Paints and Products Nigeria Plc have reached an agreement to merge their business operations.

The scheme will involve the transfer of all Portland Paints’ assets, liabilities and business undertakings which include real property and intellectual property rights to CAP.

Both companies disclosed the development in a statement sent to the Nigerian Stock Exchange.

The companies said they have taken a decision to merge their respective businesses in accordance with applicable laws; with CAP emerging as the resultant entity.

The companies said the merger will provide a unique opportunity to change the Nigerian paints and coatings landscape.

The statement said, “The decision to pursue the Proposed Merger is driven by the strategic objectives of the Boards of CAP and Portland Paints to drive growth and expansion within the Nigerian and African markets.”

Based on the merger, the enlarged CAP will have a broader portfolio covering the premium decorative segment, the mid-market decorative segments as well as the industrial segment particularly marine and protective coatings.

It said, “We believe that the proposed merger will provide our customers access to a broader product portfolio and a wider range of value options to meet their needs.

“The combination of CAP and Portland Paints will create a formidable paints and coatings company that will be strategically positioned across segments as a result of its combined brand portfolio (Dulux, Sandtex, Caplux and Hempel); its diversified product ranges spanning decorative and industrial with widespread distribution channels and retail footprint in Nigeria.”

The Managing Director of Portland Paints, Bolarin Okunowo, said that in recent months, the Board and Management of Portland Paints have evaluated various strategic options with a view to positioning the company to capture emerging growth opportunities.

Okunowo said, “CAP’s business is complementary to ours, and both companies will be better able to serve our respective customers by coming together.

“I believe the combination of Portland Paints and CAP will yield significant benefits for all of our stakeholders.”