US group PPG, a global leader in the sector of varnish and paint, with EUR 15 billion in sales last year, has bought the local firm Deutek Bucuresti, one of the biggest paint producers in the Romanian market, according to a press release.

The deal's value hasn't been disclosed, but it is estimated at EUR 40-50 million, according to market sources quoted by local Ziarul Financiar.

Deutek had sales of EUR 30 million and a net profit of EUR 3 million in 2015. The transaction still needs to receive the approval of the Competition Council.

Until now, the majority stake in Deutek has been owned by Emerging Europe Accession Fund (EEAF), the third private equity fund managed by Axxess Capital. The fund had acquired the stake in the firm three years ago from Advent International, one of the largest companies in the world exclusively dedicated to private equity investments.

This is the fund’s third exit this year, after Axxess Capital sold its stake in two other businesses, namely the toy retailer Noriel and the equipment rental firm Industrial Access.

Deutek was founded in 1993. It initially imported paint from Germany, and started the local production in 1998. Now its products are sold under the OSKAR and Danke! Brands.

editor@romania-insider.com