Nefco has sold its 20 per cent share in the paint manufacturer Eskaro Ukraine AB in connection with the acquisition of a majority shareholding by the Danish company Flügger group A/S. The deal was announced in November 2020 and has now been completed after receiving final approval from the competition authorities in Ukraine, Russia and Belarus.

Eskaro operates mainly in Eastern Europe manufacturing water-based paints, which are more environmentally friendly than traditional oil-based ones. The manufacturing process is based on a closed-loop system that prevents harmful discharges into surrounding watercourses. The acquisition of 70 per cent of Eskaro’s shares supports Flügger’s Going Green strategy.

In 2010, Nefco injected EUR 2.4 million in equity to support Eskaro’s investment in a modern production facility in Ukraine. The other financiers were Swedfund and Eskaro Group AB.

The manufacturing plant was the first of its kind in Ukraine, meeting strict environmental protection requirements for water-based paints and implementing a zero-waste policy.

“It was a strategic decision back then by Eskaro to take a new environmental approach. It has paid off – Eskaro has grown by 15 per cent annually since 2016 and is now a significant player in water-based decorative paints in Eastern Europe,” says Igor Chumakov, founder of Eskaro.

“We had some challenging times during the 2014-2015 crisis in Ukraine. During this period, Nefco provided strong financial support and flexibility for solving complex issues. Together we successfully took the company to a new level, becoming stronger and more competitive.”

Since Eskaro introduced the new environmentally friendly paints, other paint manufacturers in the Eastern European market have followed its example.

“Our aim is to demonstrate how green technologies and solutions can be applied in new markets, where such solutions don’t yet exist. Eskaro is a good example of a successful demonstration project,” says Ulf Bojö, Vice President at Nefco.

“Collaboration with other financiers is also crucial. Swedfund has been a great partner to work with and we are both happy to see that Eskaro’s work will continue with a strong industrial actor that will further the development of a greener paint market.”

For further information, please contact:

Ulf Bojö, Vice President, Eastern Europe, Nefco
ulf.bojo@nefco.int, +358 6180637