Kemira Oyj has signed an agreement to sell the tinting system business of Tikkurila CPS Oy to a new company founded by Industri Kapital, a private equity investment firm. Kemira will join the new company with a minority holding of about 30%. MB Funds will have a shareholding of about 10%. The agreement is a part of Kemira’s long-term strategy to focus on pulp, paper, and water treatment chemicals and paints.
At the same time, Tikkurila has sold their 50% share of the Corob Group, a leading global tinting machine supplier, to Swisslog, a Swiss public company that focuses on supply chain solutions for different industries. Swisslog is holding the other 50% of Corob Group.
The net sales of the businesses to be sold were € 130 million in 1999. Sales prices for the businesses total approximately EUR 200 million resulting in a pretax profit of about EUR 90 million, taking into account Kemira’s minority shareholding in the new company. The group’s operating result for the current year will not be essentially affected by the divestment of the CPS business.
Tikkurila CPS is the world’s leading supplier of advanced tinting systems. The systems are sold on all continents and the clientele mainly comprises of the paint industry. By separating the CPS business from the Tikkurila group, potential conflicts of interest with the growth strategy of the paint industry will be eliminated.
Corob Group is the world’s second largest supplier of tinting machines with subsidiaries in nine countries.
Industri Kapital is one of the leading European private equity firms with equity capital under management in excess of EUR 2,5 billion. Since 1989, 37 investments have been made in European companies in various industries. The fund investors are large Nordic, European and American institutional investors such as pension funds, investment and insurance companies.
The deals are subject to approval by relevant competition authorities.
Once the deal is completed, Raimo Piironen, now president of Tikkurila Oy and of Tikkurila CPS Oy, will become Managing director of the new company. He will continue as a board member of Tikkurila Oy. A new president for Tikkurila Oy will be appointed later following the completion of these deals.