Hempel and CVC establish strategic partnership

In agreement with the Board of Directors of Hempel A/S, the Hempel Foundation has agreed to invite CVC Funds to become a minority investor in Hempel A/S to help accelerate Hempel’s ambitious long-term organic and inorganic growth strategy. CVC is a leading global private markets manager with approximately €186 billion of assets under management and a global network of 29 offices in EMEA, the Americas and Asia. Hempel will benefit from CVC’s experience investing in and growing businesses through strategic acquisitions. Hempel Foundation remains the majority shareholder of Hempel Company.

CVC Funds, as a minority investor, will subscribe for the new shares, amounting to a stake of up to 30% in Hempel A/S over time. The investment will also enhance Hempel's ability to develop new, cutting-edge sustainable technologies to benefit customers and execute on potential acquisition opportunities, accelerating its growth path to become a leading global company in the paints and coatings industry.

"The Hempel Foundation has been the sole owner of Hempel Corporation for 75 years and remains committed to securing Hempel's financial foundation and ensuring its future growth," said Richard Sander, Chairman of the Hempel Foundation Board of Directors. "After careful consideration, the Hempel Foundation has decided to welcome a minority investor who brings unique experience and capital to support Hempel’s accelerated growth journey."

Sand added:"We specifically expect that over the next 5 to 10 years, with CVC as a new minority shareholder, the value of the company, and the value of the shares belonging to the Hempel Foundation, will increase more than it would without CVC. “This will in turn increase the dividends received by the Hempel Foundation, enhancing our opportunities for future philanthropic work. Therefore, I am delighted to welcome CVC to Hempel."

Michael Hansen, President and CEO of Hempel A/S Group said: "The competitive landscape in the paints and coatings industry is evolving at an ever-increasing pace, and we need to continue to evolve to stay ahead of the curve. “We have made solid progress on our strategy to drive profitable growth both organically and inorganically through M&A activity and delivered record results in 2023. This new partnership will significantly strengthen our industry position and will inspire our winning brands,  and further growth for brands. This means we have the ability to find transformative acquisition opportunities."

Christoffer Sjøqvist, Partner and Head of CVC Denmark, said:"Hempel’s growth over the years has been very impressive and we are excited to be a part of their growing story. We are delighted to be working with the Hempel Foundation and Michael and his team and look forward to leveraging the capital and experience of CVC Funds to support Hempel and help them achieve their growth goals."

The Hempel Foundation will continue to be the majority shareholder in Hempel A/S. The transaction is expected to close in the second half of 2024, subject to regulatory approvals.