Nippon Paint Acquires 51% of Italian Adhesives Manufacturer

On February 6, 2023, Nippon Paint announced that its subsidiary, Dulux Group, Australia, acquired the European sealant and adhesive manufacturer N.P.T.
s.r.l. Notice of Shares.

Nippon Paint Holdings Co., Ltd. (NPHD) announced that its designated subsidiary, Australia Dulux Group Co., Ltd. (DuluxGroup) has committed to acquire N.P.T.
s.r.l. (NPT) and 51% of its subsidiaries (“Acquisition”). NPT is an Italy-based manufacturer and distributor of sealants and adhesives.

DuluxGroup entered into various transaction documents (collectively the “Transaction Documents”), including a conditional share transfer agreement, a shareholder agreement and a sale and purchase agreement, whereby the seller and DuluxGroup may, on agreed terms, and conditional sale/acquisition of the remaining 49% stake.

At its meeting on December 16, 2022, NPHD’s Board of Directors decided to delegate decision-making authority to sign the transaction documents to the Representative Executive and Co-Presidents. As all transaction documents have been agreed, the agreement will be formally signed on February 3, 2023.

Reason for acquiring shares

With the sole mission of maximizing shareholder value, Nippon Paint Group unswervingly pursues the growth based on the asset assembly model, through expanding existing business and active M&A, building a strong brand and excellent talents, and achieving the goal under limited risks. Accelerate growth. In the medium and long term, Nippon Paint’s strategy is to go beyond the field of paints and coatings and expand to surrounding fields. With the passage of time, Nippon Paint will steadily establish an operation base in each operating region, and strive to increase the market share of Nippon Paint in key areas of the global market.

NPT is engaged in the manufacture and sale of sealants and adhesives. In addition to selling these products in Italy, the company exports its products to more than 60 countries around the world, leveraging its leading sealant and adhesive technologies, strong brands, well-invested European manufacturing base and extensive distribution network. The acquisition will allow NPT to further expand its growth in the European market, while also opening up broader growth opportunities for Nippon Paint Group, including leveraging Nippon Paint Group’s extensive distribution network in Asia and DuluxGroup through its Selleys in Australia and New Zealand. Expertise owned by the sealant and adhesive brand. The acquisition is expected to help accrete earnings per share from the first year of acquisition.

The history of Dulux Group (Australia) can be traced back to 1918, and its original tradition started from home decoration paint in Australia and New Zealand. In addition to the “DULUX” brand, it also owns other paint products (including accessories) brands such as Selleys, Cabot’s, and BritishPaint.