OSAKA -- Kansai Paint aims to enlarge its footprint in the expanding African market with plans to acquire building paint company Sadolin group of Uganda around springtime.
The Osaka-based company will buy all stakes in Sadolin via a South African unit, a purchase estimated at more than 10 billion yen ($87.5 million).
Sadolin focuses on interior paint and mainly serves Uganda, Tanzania and Kenya. The business employs about 700 people, and annual sales reach an equivalent of around 10 billion yen.
Kansai Paint's African sales totaled 29.3 billion yen for the year ended in March 2016. The Japanese company holds a roughly 40% share in Africa's construction-paint market. By continuing aggressive investment in the region, Kansai Paint aims to increase African sales to at least 55 billion yen annually by fiscal 2018.
Kansai Paint has cultivated a presence on the continent since its 2011 acquisition in South Africa. The Japanese company hopes the Sadolin deal strengthens its footing in East Africa.