PPG to acquire Danish coatings firm Dyrup

PPG Industries said it signed a share purchase agreement to acquire Dyrup A/S, a European coatings company based in Copenhagen, Denmark, from public holding company Monberg & Thorsen. The total transaction value, including assumed debt, is around €135mn ($200mn).

The transaction is expected to close in the third quarter of 2011, subject to regulatory approvals, customary closing conditions and consultation with appropriate employee representative bodies.

Dyrup is a European producer of architectural coatings, in particular wood stains, and specialty products with 2010 sales of approximately €190mn ($270mn). It employs about 950 people and operates six manufacturing facilities in Europe.

Dyrup’s strong portfolio of brands (in particular wood stain and paint), including Bondex, Gori and Xylophene, is sold primarily in Denmark, France, Germany, Portugal, Poland and Spain through professional and do-it-yourself channels, PPG said.

“The acquisition of Dyrup would expand PPG’s European architectural coatings business by extending our geographic presence in the region and by bolstering our wood care product offerings, an end-user segment where we today have a modest presence,” said Pierre-Marie De Leener, president of PPG Europe.

De Leener said that anticipated synergies, including improved raw material procurement, are expected to result in Dyrup achieving EBITDA margins in the near term that will be at a level consistent with PPG’s existing European architectural business.

“Dyrup’s operations and sales channels would be a great complementary fit with PPG’s structure,” he said. “The transaction will expand PPG’s growth in several key countries, including Poland, France and Denmark, and further establish PPG in several regions where we have limited or no architectural coatings presence, especially in Portugal, Spain and Germany.

“We believe this acquisition presents an excellent opportunity for customers of both companies, as well as a means to profitably grow PPG’s European architectural coatings business beyond organic opportunities,” De Leener said.