Tikkurila has completed the acquisition of the business operations of Serbian paint company Zorka Color. Approvals from the competition authorities have been received and also other terms and conditions of the transaction have been fulfilled. The asset purchase agreement was signed in April 2011, and the business was transferred to Tikkurila on July 1, 2011.
The purchase price paid at the time of the closing of the deal is approximately EUR 12 million. In addition, during the next four years Tikkurila will pay a possible additional purchase price, which will be based on the future results of the business operations acquired.
The acquisition will strengthen Tikkurila's position, in accordance with the company's strategy, in Central Eastern Europe and in the Balkans in particular. In addition to Serbia, Zorka Color also operates in Macedonia, Bosnia-Herzegovina, Montenegro, Croatia, and Kosovo. According to estimates by Tikkurila's management, Zorka Color is one of the three largest players in Serbia and the largest player in Macedonia in the decorative paints business. Trademarks to be transferred to Tikkurila in the acquisition include, for example, Linea, Decolux, Zoralux, and Mixline.
According to Zorka Color, the company's revenue in 2010 was approximately EUR 16.2 million, operating profit (EBIT) EUR 1.0 million, and the average number of employees some 150. Zorka Color's employees have become Tikkurila's personnel.