DuluxGroup is seeking new labels to take into the region and to expand its existing brands, which include Dulux, Selleys, Yates and Cabot’s. DuluxGroup currently generates sales of around $1 billion a year, mostly domestically and in the regional markets of New Zealand and Papua New Guinea. Dulux’s paint division has a 40% slice of the domestic paint market.
Dulux’s ASX listing came less than two weeks after rival paint company, Wattyl, recommended that shareholders accept the $1.67 per share offer from US giant Valspar. Valspar initially launched a takeover offer of $1.30 per share in May, a significant discount against the final offer. The revised offer, which valued Wattyl at $142 million, suggested lofty ambitions on behalf of the American suitor and go some way towards confirming rumours that Wattyl/Valspar might have agreed on some sort of exclusivity tie-up with retail hardware incumbent Woolworths-Lowe’s. Valspar is the world’s sixth largest paint and coating manufacturer.