Crown Paints group bids for controlling stake in German business

Hempel Group, parent company of Darwen-based Crown Paints, has signed an agreement to acquire a 65% stake in leading German paint manufacturer JW Ostendorf (JWO) in a move to significantly bolster its global decorative business.

The bid, for an undisclosed sum, depends on the relevant competition clearances by the German and UK competition authorities, which are expected within four weeks.

Operating throughout 20 European, and five non-European countries, family-owned JWO is one of Germany’s leading decorative paint manufacturers and is the only private label specialist in Europe.

Investing significantly in cutting-edge technology and environmentally-friendly production, the North Rhine Westphalia manufacturer is also certified by LGA (derived hygiene standards for paint as for the food industry).

The deal also brings with it the appointment of Joe Devitt, chief executive of Crown Paints, as the new top executive in Hempel Decorative Europe.

Following closing of the transaction, he will be responsible for bringing Crown Paints and JWO together, aligning the businesses, sharing knowledge and expertise and identifying synergies.

While both businesses will continue to trade independently, as a decorative business of the Hempel Group they will have a leading position in the European Market.

Mr Devitt said: “Both businesses are passionate about paint and about serving our customers.

“We share many business values and our market coverage, know-how and production facilities are extremely complementary.

“The joint venture is well placed to drive consolidation in the highly competitive market of decorative paints and I am looking forward to working with JWO to further enhance our product offering throughout Europe.”

JWO also owns French paint manufacturer Renaulac, which will become a key asset for the Hempel Group, strengthening access to the French market.

Hempel Group president chief executive, Henrik Andersen said: “Our decorative business is relatively new and has, therefore, naturally been a bit overshadowed by the company’s two other strategic business areas, marine and protective.

“This is now over. With JWO now sitting alongside Crown Paints we have significantly grown our decorative business and sent a signal that we are ready to do more – in Europe and globally.

“I have great expectations for the collaboration between JWO and Crown Paints and I am confident that the companies will continue to develop and grow the Hempel family’s decorative business in Europe,” said Mr Andersen.

JWO is a family-owned company where the former chief executive and majority shareholder, Michael Ostendorf, and his sons Jan and Jens Ostendorf, will continue to be involved in the business as shareholders.

The running of the business will pass to Jan and Jens Ostendorf who will be responsible for North and South European markets, respectively.

Michael Ostendorf said: “It is with great pride and joy that we now become part of the Hempel Group, one of the world’s leading manufacturers of coatings.

“It was important to our family that the company, which we were to form a partnership with, has a great emphasis on development, responsibility, customer focus and strong values.

“At the same time it was important that the partner could add value to JWO.

“Being part of Hempel strengthens JWO’s own recently-started industrial business and offers many additional strengths to draw from, like the expertise in R&D and, not least, the much larger geographical coverage.

“I particularly look forward to the close collaboration we are forming with Crown Paints.

“By joining forces, we create a strong platform for continued expansion in the European decorative market.”

Hempel’s investment in JWO is one of many that the group has made over the past few years.

Since acquiring Crown Paints in 2011, Hempel has successfully acquired and integrated companies such as Schaepman (The Netherlands) and Jones Blair (US) into the Hempel family to strengthen its global offer in the marine, protective and decorative markets.