Karanović & Nikolić advises on sale of Tikkurila’s Balkan subsidiaries

Karanović & Nikolić, in cooperation with local lawyers, advised Tikkurila Oyj, the Finnish paints and coatings maker, on the sale of the entire share capital of its subsidiaries in Serbia and Macedonia to the local management. According to the signed sales agreement, the transaction – subject to the fulfilment of agreed conditions, will be closed in the first quarter of 2018.

The Karanović & Nikolić legal team – led by Miloš Vučković, Ivan Nonković and Milijana Tomić, assisted Tikkurila in the structuring of the transaction, drafting and negotiating the transaction documents.

Operating in 14 countries, Tikkurila is the leading paints and coatings professional in the Nordic region and Russia. The company entered the Balkan market in 2012, after acquiring the business operations of Zorka Color, a Serbian paint company. In addition to Serbia, Tikkurila operated in Macedonia, Bosnia and Herzegovina, Montenegro, Croatia, and Kosovo*. According to the company statement, the divestiture of the subsidiaries in Serbia and Macedonia is part of a more extensive programme to boost profitability and competitiveness.

The combined revenue of the two companies to be sold was approximately EUR 13 million in 2016, and the number of employees totalled 130. The buyer will continue the distribution of Tikkurila branded products in the Balkan area.