UAC of Nigeria Plc on Tuesday, announced the acquisition of majority equity stake in Portland Paints and Products Nigeria Plc.
Portland Paint is a leading player in the paint manufacturing industry in Nigeria, with a strong brand, broad product range and nationwide distribution network.
A statement on Tuesday explained that Portland Paints manufactures and markets an array of decorative paints, industrial and marine coatings under the Sandtex, and Hempel brand names.
It added that the company also holds the Armitage and Ideal Standard sanitary ware dealerships in Nigeria.
It said the transaction, which has received the required statutory approvals, was driven by potential synergies between the two companies.
According to the statement, the acquisition is in line with UACN’s strategy of building a portfolio of brands and businesses with exposure to the growth segments of the Nigerian economy, and partnerships that deliver long-term value to the company and its stakeholders.
It quoted UACN’s Group Managing Director/Chief Executive Officer, Mr. Larry Ettah, as saying, “We are delighted to have acquired a majority stake in Portland Paints.
“This strategic acquisition provides UACN with the opportunity to diversify its paints revenues by gaining entry into the mid-tier decorative and marine paints market where Portland Paints has a leading position.
“With a strengthened position in paints and enhanced supply chain and distribution efficiencies, UACN will engage stakeholders to grow the market sustainably and deliver value to shareholders in the enlarged UACN Group.”
UACN had in March acquired 51 per cent majority stake in Livestock Feeds Plc, which produces animal feeds and is quoted in the Agricultural sub-sector of the Nigerian Stock Exchange’s Daily Official List.
The company said, “The transaction has been concluded via a special placement and places UACN as the majority shareholder with a shareholding of over 51 per cent in Livestock having previously acquired in excess of 11 per cent of the company’s share capital through secondary market trade.
“The transaction has received the required statutory approvals.”
Speaking after the deal, Ettah said, “This strategic acquisition is industry-defining and underscores our strategy to position UACN Group as a portfolio of companies with exposure to the growth segments of the Nigerian economy.
“The addition of Livestock Feeds to our business brings our combined share in the Nigerian animal feeds market to 32 per cent. It enhances our response to demand in the industry and provides us with an immediate opportunity to diversify our manufacturing and sales locations.”