Turkish paint manufacturer Betek Boya, known for its brand Filli Boya, was acquired by Japan's Nippon Paint Holdings Co. for an undisclosed amount, financial services firm Ünlü & Co., said on Friday. An agreement was signed for the transfer of shares in Betek Boya and its subsidiaries.

Betek Boya, well known in Turkey for its Filli Boya brand of paint, was expected to see sales of TL 1.6 billion last year. The value of the deal was not disclosed in the statement.

According to Turkish regulatory filings, German firm DAW holds nearly 25 percent of Betek's shares, while the majority stakeholder is the Akpinar family of Turkey. In a presentation prepared for the investors, Nippon said by acquiring Betek Boya the company will achieve the largest market share in Turkey in addition to Asia, where the company has long had a strong presence in, and the Pacific region, where a separate acquisition was recently announced.

The Japanese company also cited the attractive market, with favorable population figures and high economic growth in Turkey in addition to expected expansion of the decorative paint with particular reference to the outstanding and experienced management with a track record of expanding the business, as well as the modern and large production facility of Betek Boya in Turkey. "While GDP [gross domestic product] growth has slowed since the second half of 2018, historically Turkey has gone through economic cycles every 6-7 years followed by a rebound within 1-2 years, and considering the population pyramid and growth potential of the Turkish markets, this is the optimal time to invest," Nippon said.

The decorative paint market in Turkey is an appealing market for which high growth is expected, the Japanese manufacturer noted.

Betek Group, which is the group of companies the company is acquiring shares, was founded in 1988 and handles ETICS (External Thermal Insulation Composite System: insulation materials) in addition to decorative paint and industrial coating for construction. Betek Group is a leading company that has the top share in the decorative paint market in Turkey. Its major brands Filli Boya and Fawori have a large market share and high brand-recognition levels.

With a market value of $12 billion, Nippon is the leader in Asia-Pacific and operates in more than 20 countries with 20,500 employees. Last year, the company earned $5.7 billion in sales and announced $800 million in operational profits.