Advent in Romanian buyout

Advent International has acquired Dufa, Romania’s largest decorative paints producer, from existing Romanian and German shareholders in a €15m private equity transaction. The deal includes the acquisition of all intellectual property rights and product brands.

“Construction materials are one of Advent International’s main sectors,” said Chris Mruck, a director of Advent. “Dufa will be able to deploy knowledge derived through the industry expertise and contacts in our other investments, including Bolix, the Polish insulation materials business, and Materis and Loxam, two of Advent’s French investments in the construction field.”

The market for decorative paints is underdeveloped in Romania. Usage per capita is well below the European average, which exceeds 10 litres per person each year. Rapid growth is expected over the next few years, driven by large infrastructure projects, GDP growth and increasing access to mortgage and consumer finance.

Dufa said it aimed to accommodate such expansion by investing in new technologies, strengthening its distribution network and launching new products for all market segments.

The company has recently established a specialised team of sales consultants, who will work exclusively with B2B clients, and is implementing a development plan for its sales team to improve services to the large local and international retail chains specialising in materials for house construction and decoration.

Dufa’s management team is headed by Bruno Negoita as CEO. Joining the team as chairman of the board is Roger Harrison, a former senior executive with ICI in Europe.

Advent has been investing across Central Europe since 1994 and earlier this year raised its third fund of €330m for the region. The firm’s investments in Romania include Brewery Holdings, a regional brewery; MobiFon/Connex, a mobile telephony operator; and Euromedia, the largest national outdoor advertising group.