Assets: Dunn-Edwards (USA)

Features of the asset

A leading paint supplier in the Southwestern U.S., offering an extensive lineup of paints and services to professionals in the paint and coatings industry
Despite having a modest 2.5% market share in the overall U.S. decorative paints market, Dunn-Edwards is estimated to hold a 12% market share in California and 10-20% in neighboring areas
Focusing on the West Coast within the U.S. market, aiming to achieve both sustainable growth and profitability

Competitive advantages

Established position as a leading paint supplier in the Southwestern U.S.	Holds an estimated 12% market share in California and a 10-20% share in adjacent regions
Diversified portfolio of high-quality and innovative products	Delivers meaningful and measurable performance advantages over competitors

Financial outcomes

2024 results

Revenue increased, supported by pass-through of price increases, reduced impact from adverse weather in California, and new store openings, which offset the challenges posed by a weak U.S. economy and housing market. As a result, revenue rose by 12.9% from the previous year to JPY75.0 billion.
Meanwhile, its market share remained steady at 2.5%, roughly the same as the previous year.

Growth since the acquisition (2018^*1)

Dunn-Edwards offers unique customer services that differentiate it from competitors, along with high-quality, wide-ranging products. By leveraging our Group’s marketing know-how, Dunn-Edwards has promoted the supply of new products through both new stores and its existing distribution network. As a result, its revenue has successfully grown by 68.1% compared to 2018.

Revenue: ¥75.0 bn (+12.9% YoY, +68.1 %(*1) post-acquisition)

Trends in revenues

Market share^*2: 2.5% (YoY +0.0pt / growth since acquisition +0.1pt)

2019

2020

2021

2022

2023

2024

2019

2.4%

2020

2.4%

2021

2.5%

2022

2.5%

2023

2.5%

2024

2.5%

Dunn-Edwards’ performance was compared using the 2018 figures because the 2017 figures, the first year post-acquisition, only covered 10 months following its acquisition in March 2017
NPHD’s estimates

Non-financial outcomes (2024 results)

Human resources/organizations	Many Diversity & Inclusion initiatives Ratio of female employees: 29.4% Ratio of women in managerial positions: 35.3%
Customer base	Opened 17 new stores in Northern California to expand our footprint in this region
Nature/environment	Water recycling and reuse increased 10% from 2023 levels Participated in the Paint Care program for collecting and recycling surplus paint to reduce waste

Related data

SWOT Analysis

For the SWOT analysis of each asset, please refer to the “Overview of Partner Companies” section in the Investor Book.

Medium-Term Strategy

For the medium-term growth strategy of each asset, please refer to pages 19 and 20, as well as the Appendix, in the Medium-Term Strategy Briefing presentation.

Asset Management Report

For information about each asset company’s growth since acquisition and their recent performance, please refer to the “Asset Management Report” on our website.