Teknos has sold its Architectural Coating business in Denmark

21-Jun-2007

Teknos has sold its Architectural Coating business in Denmark to Nordisk Aktiv Virke A/S. The agreement will be effective from July 1st 2007.

The divestment covers Teknos' Danish AC business segment including Teknos Proline shops in Denmark. Employees related to AC business in Denmark continue as old employees at the new owner company. The production of Danish AC products will also be transferred gradually to the new owner.

The history of Teknos Group's AC business in Denmark dates back to 2001 when Teknos bought Hygaea A/S paint company. Via the acquisition Teknos got new know-how on the Industrial Wood and on the UV technology as well as AC products and AC shop chain. For Teknos the AC business in Denmark was new and the AC markets in Denmark turned out to be totally different than those in Finland and Sweden. Teknos was not able to find any synergy within the Group and neither any common Group concept within the AC products.

Teknos had therefore reached the conclusion that it is not wise to continue in so narrow segment and with a quite little market share. In the future Teknos will put the efforts on the markets where it already is strong and where it has potential for growt. Now Teknos continues in Denmark as market leader at the industrial paint markets.

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