Nippon Paint makes $4.2bn acquisition proposal

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Nippon Paint makes $4.2bn acquisition proposal

Gilbert + Tobin

Gilbert + Tobin is advising DuluxGroup on Nippon Paint’s $4.2 billion proposal to acquire it by scheme of arrangement.

Firms: Gilbert + Tobin (DuluxGroup); Undisclosed (Nippon Paint)

Deal: DuluxGroup has entered into a scheme implementation deed with Nippon Paint where it proposes to acquire 100 per cent of DuluxGroup for $9.80 per share by scheme of arrangement.

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 Ryan

Emma Ryan

Emma Ryan is the editor of Lawyers Weekly at Momentum Media.

Emma has worked for Momentum Media since 2015, and has been responsible for breaking some of the biggest stories in corporate Australia. She also directs the content for Lawyers Weekly's stable of events, including the Australian Law Awards, the Women in Law Awards and the Boutique Law Summit. 

A journalist by training, Emma has spent her career connecting with audiences across a variety of platforms, including online, podcast and radio.

She graduated from Charles Sturt University with a Bachelor of Communications (Journalism). 

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