The Boards of Directors of Chemical and Allied Products Plc (CAP) and Portland Paints and Products Nigeria Plc have taken a decision to merge their respective businesses in accordance with applicable laws; with CAP emerging as the resultant entity in the proposed merger.
The proposed merger is subject to the required regulatory and corporate approvals being obtained. The respective boards of CAP and Portland Paints strongly believe that the proposed merger, which provides a unique opportunity to change the Nigerian paints and coatings land scape, will be attractive and value accretive to shareholders of both companies. According to separate statements signed by David Wright, Managing Director, Chemical and Allied Products Plc and Bolarin Okunowo, Managing Director, Portland Paints and Products Nigeria Plc, the firms noted that 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.
CAP and Portland Paints play in distinct segments, and the enlarged CAP will have a broader portfolio covering the top-end/premium decorative segment, the mid-market decorative segments as well as the industrial segment (in particular marine and protective coatings). “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.