Polish paint maker FFiL Śnieżka has agreed to acquire an 80% stake in Hungarian peer Poli-Farbe within the framework of a cooperation agreement, Poli-Farbe said on Tuesday, as reported by Hungarian news agency MTI.
Poli-Farbeʼs Hungarian owners will retain a 20% stake in the company, while the headcount at its production base in Bócsa (Central Hungary) will remain unchanged at 265, the company said. The partnership with Śnieżka will strengthen its exports in the region and improve its position on the plaster market, it added.
Poli-Farbe Managing Director Antal Szabó said partnering with Śnieżka on purchases of feedstock would give the company stability and make developments more predictable. The two companiesʼ partnership also paves the way for joint research and development in the long term, he added.
Śnieżka Chairman Piotr Mikrut said the transaction would be advantageous for both sides. Hungary will become Śnieżkaʼs biggest export market as a result.
Poli-Farbe is among the biggest sellers of interior paint in Hungary. Last year, it had revenue of HUF 12.5 billion.
Śnieżka is a market leader on the paint and varnish markets in Poland, Ukraine, and Belarus. It sells more than 150,000 tons of paint a year and employs over 1,000 people.