Nippon Paint to Buy Back European Automotive Coatings Business
The company transferred the European automotive coatings business to Wuthelam Group in August 2021. Nippon Paint said the business has since recovered to a certain level following restructuring initiatives, including reorganization, and that bringing the operation back into the group is intended to accelerate its global automotive coatings strategy. Following the planned buyback, Wuthelam Group will no longer directly hold any Nippon Paint Group businesses.
The acquisition price is approximately €47 million, or ¥8.5 billion. The transaction is scheduled to close in October 2026.
Nippon Paint established a special committee consisting of three independent directors to review the transaction from the perspective of protecting minority shareholder interests. The company also commissioned a third-party valuation firm to assess the equity value of the target company group, with the acquisition price determined based on that valuation. Chairman Goh did not participate in the board’s deliberation or resolution concerning the transaction.
For 2026, Nippon Paint expects to consolidate three months of earnings from the business, covering October through December. The company projects approximately ¥4 billion in revenue and ¥12 million in after-tax profit from the operation during that period.
The transaction has been announced but has not yet closed, with completion currently scheduled for October 2026.
The planned transaction returns a European automotive coatings operation to Nippon Paint following a five-year restructuring period and adds another significant deal involving a major global coatings producer. Follow PCI’s Acquisitions coverage for more coatings-industry transactions and consolidation activity.
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