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Nippon Paint makes $4.2bn acquisition proposal
Gilbert + Tobin is advising DuluxGroup on Nippon Paint’s $4.2 billion proposal to acquire it by scheme of arrangement.
Emma Musgrave
Firms: Gilbert + Tobin (DuluxGroup); Undisclosed (Nippon Paint)
Value: $4.2 billion
Area: M&A
Key players: The G+T team is being led by M&A partners Neil Pathak and Alex Kauye, with assistance from lawyers Josh Fisher, Matthew Ampt, Nick Madders, Sarah McArthur and Travis Cordingley.
Partner Simon Lynch is advising on financing aspects and Partner Muhunthan Kanagaratnam and consultant Julian Lian are advising on tax aspects of the transaction.
Deal significance: DuluxGroup is described as Australia’s leading paint manufacturer.
The company hosts many brands in the Australian and New Zealand market, including Dulux, Cabot’s, Selleys and Yates.
Meanwhile, Nippon Paint is described as being the largest paint and coatings business in Japan, and the fourth-largest in the world.
“This is a landmark transaction for DuluxGroup, which listed on the ASX in 2010 following its demerger from Orica,” a statement from G+T confirmed.
“Nippon Paint is offering 16.1 times EBITDA which represents the highest multiple paid in a major paint company transaction globally. No changes are expected to DuluxGroup leadership, business portfolio, manufacturing and operations. The transaction provides increased opportunity for DuluxGroup to pursue its growth ambitions, leveraging Nippon Paint’s global scale and resources.”
The scheme is expected to be implemented in mid-August 2019.
Commenting further on the matter, partner Neil Pathak said: “We are pleased to be advising our long-time client DuluxGroup on this landmark transaction”.
“We are very grateful for the trust put in us by DuluxGroup to handle this important matter. We look forward to supporting them through to closing of the transaction and beyond,” he added.
The scheme between DuluxGroup and Nippon Paint is expected to be implemented in mid-August 2019.
Emma Musgrave
Emma Musgrave (née Ryan) is the managing editor, professional services at Momentum Media.
Emma has worked for Momentum Media since 2015, including five years spent as the editor of the company's legal brand - Lawyers Weekly. Throughout her time at Momentum, she has been responsible for breaking some of the biggest stories in corporate Australia. In addition, she has produced exclusive multimedia and event content related to the company's respective brands and audiences.
Prior to joining Momentum Media, Emma worked in breakfast radio, delivering news to the Central West region of NSW, before taking on a radio journalist role at Southern Cross Austereo, based in Townsville, North Queensland.
She holds a Bachelor of Communications (Journalism) degree from Charles Sturt University.
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