Private equity firm acquires up to 30% of Hempel

Luxembourg-based private equity firm CVC Funds is to acquire up to 30 per cent of paints and coatings manufacturer Hempel.

CVC has a network of 29 offices throughout EMEA, the Americas and Asia, and has approximately €186bn of assets under management.

While the Hempel Foundation continues to be the majority shareholder in Hempel, CVC Funds will subscribe to new shares, equating to a stake in Hempel A/S of up to 30 per cent over time.

Hempel acquisition

Hempel says the investment will strengthen its ability to develop new, sustainable technologies and to execute potential acquisition opportunities, to accelerate its growth journey towards becoming a leading global company within the paint and coatings industry.

“The competitive landscape is moving at an increasingly faster rate in the paint and coatings industry and we need to continue to grow to remain at the forefront,” says Michael Hansen, group president and CEO of Hempel.

“We have already made solid progress on our strategy of driving profitable growth, both organically and inorganically through M&A activity, delivering record-breaking results in 2023. This new partnership will considerably strengthen our industry position, will ignite further growth in our winning brands and means we are well-placed to seek out transformative acquisition opportunities.”

Christoffer Sjøqvist, partner and head of CVC Denmark, adds: “Hempel’s development over the years has been very impressive and we are delighted to be joining their ongoing growth story. We are excited to partner with the Hempel Foundation and Michael and his team, and look forward to supporting Hempel with CVC Funds’ capital and experience to help them achieve their growth ambitions.”

The transaction is expected to close in the second half of 2024 and is subject to regulatory approval.