Tikkurila has signed a letter of intent to sell the entire share capital of its three sales companies in Hungary, Slovakia and the Czech Republic. The intention is to sell the companies to a Czech company to be established by Tikkurila's local management. The new company will continue the retail of Tikkurila's products in the three countries. In accordance with its strategy, Tikkurila is developing its business in Hungary, Slovakia and the Czech Republic with a target to serve its customers even better and in a more effective way.
The combined revenue of the three sales companies to be sold was approximately EUR 10.2 million in 2010, and the number of employees totaled approximately 70. It is estimated that the transaction will reach the agreement stage at the end of 2011 and will be closed during the first quarter of 2012.
In conjunction with the closing of the transaction, Markku Immonen, Group Vice President, Strategy & Business Development, who currently is also in charge of Tikkurila's operations in the Czech Republic and China, will continue as an entrepreneur and resign from his position in Tikkurila.
"It is excellent that we are able to develop and streamline our operations and, at the same time, continue cooperation with our long-standing colleagues, even though with new roles," says Erkki Järvinen, Tikkurila's President and CEO.
Tikkurila's strategic target is to be the leading provider of paint-related architectural solutions for consumers and professionals in its geographic area. Organic growth, in particular, is sought by making use of strong brands, developing distribution solutions, and to relevant extent by entering into service business. Efficiency will be improved in all operations.