19. Feb 2021 | Markets & Companies
Hempel to acquire Wattyl Australia and New Zealand
Denmark-based coatings manufacturer Hempel A/S signed a purchase agreement for the acquisition of Wattyl, a manufacturer of paint for the decorative and protective segments with a turnover of EUR 150 million and 750 employees in Australia and New Zealand.
The seller is The Sherwin-Williams Company, the world’s largest paint and coatings company and headquartered in the United States. The transaction is now pending customary approval from the authorities, which is expected in the first quarter of 2021.
Strong platform for continuous growth
“We are now taking the first large, visible step in our ambition of doubling Hempel by 2025, and the acquisition will have a major, positive impact on our footprint and development in our South & East Asia region,” Hempel Group President & CEO Lars Petersson says.
“The acquisition is in line with our Double Impact strategy and the growth ambitions for our decorative and protective segments. Furthermore, the acquisition of Wattyl clearly highlights key points of the Hempel strategy: We are going for leadership positions in selected segments and geographies, and we aim to double our revenue within five years to EUR 3 billion. Doubling our revenue will allow us to double our positive impact by investing in more sustainable coating solutions, innovation and digitalisation.”
Wattyl operates four factories, five distribution centres and 100 company-owned stores
Wattyl’s business model is similar to the Hempel company Crown Paints in the UK, with a portfolio of branded products and nearly 100 company-owned stores across Australia and New Zealand, and strategic distribution partnerships servicing the DIY and trade consumers. The company’s headquarters are located in Baulkham Hills, Sydney, New South Wales and it operates two factories (Kilburn, South Australia and Footscray, Victoria) and five distribution centres (4 in Australia, 1 in New Zealand).
Going forward, Wattyl will still be managed by current Managing Director Matt Crossingham, who is looking forward to joining the Hempel Group and is committed to the ongoing success of the region. From a branding perspective, Hempel fully recognises the strengths and attributes of the Wattyl brand. Hempel intends to invest in and further develop these attributes and use the endorsement “A part of Hempel” in branding and communication, as we see ourselves as guardians of strong brands.
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