said it signed a purchase agreement to acquire Wattyl – one of Australia and New Zealand’s leading manufacturers of paint for the decorative and protective segments with a turnover of €150 million and 750 employees – from The Sherwin-Williams Company.
The transaction is now pending customary approval from the authorities, which is expected in the first quarter of 2021.
“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 said.
“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 €3 billion. Doubling our revenue will allow us to double our positive impact by investing in more sustainable coating solutions, innovation and digitalization.”
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 Aus-tralia and New Zealand, and strategic distribution partnerships servicing the DIY and trade consumers.
“Hempel and Wattyl working together, not only within decorative paints but also within protective coatings solutions, will put us in a great position to deliver our strategic ambition, particularly in our Decorative, Infrastructure and Energy segments, through combined expertise, industry knowledge and quality products," Petersson said. "Consequently, our expectations for Wattyl as part of our family are high, and together, Wattyl and Hempel will create a strong platform for continued growth for our entire South & East Asia region."
Going forward, Wattyl will still be managed by current Managing Director Matt Crossingham.
“The entire team and I are pleased to join the Hempel family, and we are looking forward to contributing to Hempel’s growth and development – not only in Australia and New Zealand – but throughout the South & East Asia region. We will gain access to increased know-how, experience and innovation as well as a broader product portfolio, which will benefit our customers," he said. "With Hempel’s ownership, I am certain that Wattyl will raise to the next level.”
From a branding perspective, Hempel intends to use the endorsement “A part of Hempel” in branding and communication.