MOSCOW (dpa-AFX) - Swiss specialty chemicals company Sika AG (SXYAY.PK, SKFOF.PK) Monday said it has agreed to acquire Kreps LLC, a mortar manufacturer in Russia. The financial terms of the deal were not disclosed.
The transaction is subject to clearance by the local anti-trust authorities.
Kreps offers a wide range of mortar products for interior and exterior finishing. The acquired business generates annual sales of 15 million Swiss francs. Kreps operates production plants in Saint Petersburg and Yekaterinburg, two geographical areas where Sika has not previously had its own mortar manufacturing.
The plants manufacture a wide range of mortars, mainly tile adhesives, plasters, and floor leveling compounds. The facilities also include a professional training center and well-equipped production laboratories.
Sika said the acquisition of Kreps gives it improved access to major home centers and builders' merchants.
The company expects the combination of its technical know-how and direct sales approach with Krep's developed distribution network and production base will enable it to expand the local supply chain and better penetrate the market.
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