Asian Paints buys Taubmans Fiji
By Our Corporate Bureau | 11 Sep 2003
Mumbai: Asian Paints (India) Ltd today announced that through its subsidiary in Fiji, Asian Paints (South Pacific) Ltd (APSP), it has acquired Taubmans Paints (Fiji) Ltd, Fiji's fourth-largest paint company, to consolidate its leadership position in that country.
Taubmans is controlled by Akzo Nobel which has 65 per cent stake in the company, while Fijian Holdings, the local partner, has the balance 35 per cent. APSP will buy the entire stake from both the companies at a total cost of F $2.9 million (US 1.42 million).
The entire cost of the acquisition will be funded by APSP, as the company has surplus cash and is presently a zero-debt company. Asian Paints operates in Fiji through APSP. The acquisition will also include Taubmans' paint business in the neighbouring Samoa Islands.
Taubmans's brands are popular in the premium decorative segment. It is the dominant player in the project sales segment, where Asian Paints has a limited presence. In the neighbouring Samoa Islands, Taubmans is the leader and has a dominating presence. It operates under the name Samoa Paints.
Taubmans' consolidated sales in the financial year 2002 was F $4.1 million (US 2.0 million). It is a profitable company with profit before interest and taxation margins of around 10 per cent in 2002. Taubmans has two manufacturing facilities situated in Suva (Fiji) and Samoa.
APSP is the largest paint company in Fiji with a market share of around 40 per cent. It has been operating in Fiji for over 25 years and is the leader in the decorative and marine segment. Asian Paints is also present in the other island countries in South Pacific — Vanuatu, Solomon Islands and Tonga.
"This is an effort to further consolidate our leadership position in Fiji and also strengthen our presence in the South Pacific region. The acquisition will be funded internally by our Fiji subsidiary due to its healthy financials and cash-flow position," Ashwin Dani, vice-chairman and Managing director, Asian Paints India. "Taubmans' operations, product range and segment presence are complimentary to our existing operations in Fiji. This will enable us derive numerous synergies from this acquisition."