A: We are very excited about our acquisition of Farrow & Ball, which is the next, large step in our ambition to double Hempel by 2025 and there is a good match between the two companies. The acquisition is also a good match to our Double Impact strategy, underlining our ambitions to grow the company within a key segment (Decorative) and across geographies.
Q: What value does this acquisition add to Hempel’s product portfolio?
A: Farrow & Ball is an iconic, luxury, decorative paint and wallpaper company. It is used by consumers, designers and cultural institutions around the world – all of who have a passion for rich colors in eco-friendly paint. Farrow & Ball has strong sustainability principles, focusing on water bases, responsible practices, more eco-friendly paint formulas and recyclable materials. This will complement Hempel’s ambitions to become a sustainability leader within selected segments and geographies.
Farrow & Ball are extraordinarily experienced in e-commerce and this is an opportunity for Hempel to learn from this.
Q: What changes will be made to Farrow & Ball after it becomes part of Hempel?
A: Farrow & Ball has a strong legacy and a unique luxury positioning. We will continue to brand it as such as a stand-alone entity with a separate governance structure. The ambition is to continue to grow the brand in the luxury market segment globally. There will be no change to how and where Farrow & Ball is manufactured and headquarters will continue to be in Wimborne, Dorset. Anthony Davey will continue to lead the company together with the Farrow & Ball Executive team.
Q: When is it scheduled to be approved?
A: The transaction is subject to customary regulatory approval and we expect it to close in the second half of 2021.
Q: Does Hempel have plans for more of these types of acquisitions?
A: As part of our Double Impact strategy, we have a target to more than double our decorative business. The current acquisition is a step in this direction, as is the acquisition of Wattyl Australia and New Zealand, which we completed in April. Overall, we are looking for the right strategic fit when we engage and evaluate M&A prospects. Especially in terms of segment fit and sustainability fit. And let’s not forget that we also have a significant ambition to grow organically.