Finland’s Tikkurila completes sale of four European subsidiaries

01 March 2012 12:06  [Source: ICIS news]

LONDON (ICIS)--Finland’s Tikkurila has completed the sale of four subsidiaries in Hungary, the Czech Republic, Slovakia and Romania, following a letter of intent in November 2011, the decorative paints maker said on Thursday.

The subsidiaries were transferred to Dejmark Group, which was established by Tikkurila’s Czech Republic and Slovakian management and will continue to sell the company’s products in all four countries, it added. Dejmark Group is based in the Czech Republic.

Tikkurila said the combined cash consideration for the sold shares is €600,000 ($800,000).

It added that the combined revenue of the four divested subsidiaries was about €12.8m in 2011, and the number of employees at the end of December 2011 totalled 65.

Tikkurila said as a result of the transactions, a non-recurring sales loss of about €1m will be recorded in its 2012 first-quarter results.

The four divestments are part of the company’s group-wide programme to streamline its operational structure.

In January, Tikkurila laid off 62 Finland-based workers as part of its programme.

($1 = €0.75)

By: Leigh Stringer
+44 208 652 3214

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