Stimulus takes up stake in Neo Paints
In a circular released on the Namibia Stock Exchange News Service this week, private equity firm Stimulus announced that it had acquired 50% of the total issued share capital of Neo Paints for a transaction value of 14% of Stimulus’ portfolio.
“The Transaction has the potential to enhance value of the Stimulus portfolio and increase its dividend generating capacity. Stimulus believes that the opportunity to bring in new strategic investors and strengthening of the management team could continue to entrench Neo Paints profile as the leading manufacturer and distributor of paint and related products in Namibia,” Stimulus motivated in a statement.
The economic outlook for the Business remains favourable with expected continued growth in the general economy and construction industry in particular, driven by residential, public sector and other commercial property developments,” Stimulus said.
A brief background on Neo Paints indicates that it was founded and established in 1953 under the name NEO Paints Factory and currently employs 116 staff. NEO Paints has three subsidiaries, namely NEO Paints Factory, NEO Paints Financing and NEO Paints Property Investments, the latter being the property holding entity.
The Business trades with a range of over 80 of its own product lines in the decorative paints market but is also the sole distributor of Sigma Paints industrial paint products. At present the Business operates from two locations, the main factory in Windhoek and distribution centre in Walvis Bay.