Tikkurila has decided to change its business model in the Ukrainian and Belarussian markets, and hence Tikkurila Oyj has entered into an agreement to sell the entire share capital of its subsidiaries in Ukraine and Belarus to a company established by Tikkurila’s local management. The new company will continue the distribution of Tikkurila’s products in both countries.

The combined revenue of the two companies to be sold was approximately €12 million in 2015, and the number of employees totaled 90. It is estimated that the transaction, subject to fulfilment of agreed preconditions, will be closed during the second quarter of 2016.

In conjunction with the closing of the transaction,  Mauno Nurm, managing director of both companies subject to the transaction, and Igor Zhenevsky, sales director, Ukraine, will continue as entrepreneurs and resign from their positions in Tikkurila.

“Based on the good experience from a similar type of change in our business model in the Czech Republic, Hungary, Romania and Slovakia in 2012, we have decided to develop and streamline our operations in Ukraine and Belarus with an entrepreneurial distributor driven model,” says Erkki Järvinen, president and CEO of Tikkurila.