• Login
    • Join
  • FOLLOW:
  • Subscribe Free
    • Magazine
    • eNewsletter
    Checkout
    • Magazine
    • News
    • Research
    • Markets & Technologies
    • Raw Materials
    • Top Companies
    • Directories
    • Jobs
    • Events
    • Microsites
    • More
  • Magazine
  • News
  • Research
  • Markets & Technologies
  • Raw Materials
  • Top Companies
  • Directories
  • Jobs
  • Events
  • Microsites
  • Current / Back Issues
    Features
    Business Corner
    Editorial
    Digital Edition
    eNewsletter Archive
    Our Team
    Editorial Guidelines
    Subscribe Now
    Advertise Now
    World Reports
    eBook
    Top Features
    Mixing Equipment Directory

    The Wood Coatings Market

    Antimicrobial Coatings Market

    Additives Update

    Pigment Supplier Directory
    Breaking News
    Online Exclusives
    Distributor News
    Financial News
    Paint & Coatings Manufacturer News
    People In the News
    Price Increases
    Product News
    Video Bites
    Raw Materials & Equipment
    Suppliers News
    Live From Shows
    Top News
    PPG Appoints John Stephenson as Director, Acquisition Integration

    Hempel Reports 2020 Annual Results

    AkzoNobel Completes Titan Paints Acquisition

    Mule-Hide Products Co. Promotes Steven Litaker to Territory Manager

    Terra Firma, Wanhua Announce New Distribution Partnership
    Top Companies report
    Market Research
    White Papers / Tech Papers
    Technical Papers
    Product Spec Sheets
    World Reports
    Adhesives and Sealants
    Aerospace Coatings
    Architectural Coatings
    Automotive Coatings
    Automotive Refinish
    Business Operation
    Color Trends & Forecast
    Construction Chemicals
    Corrosion Control
    Industrial Coatings
    Laboratory Equipment
    Marine Coatings
    Market Trends & Forecast
    Powder Coatings
    Production Equipment
    Radcure Coatings
    Special Purpose Coatings
    Wood Coatings
    "Green" Coatings

    Conversation with Henning Kreis of Zeppelin Systems

    Nippon Paint Marine Wins Korea Export Award

    ECOS Paints Launches Lisa Tharp Colors

    BYK-Gardner Launches VMA-Getzmann TORUSMILL

    Sensory Analytics Announces Issuance of Broad New Patent Covering Coating Thickness Measurement
    Additives
    Binders
    Pigments
    Solvents

    OQ Chemicals Increases Carboxylic Acids, Esters Prices

    Arkema Reports Full-year 2020 Results

    New Increase in Kynar Fluoropolymer Capacities at Arkema's Chinese Site

    Emerald Kalama Chemical Acquired by LANXESS

    Raw Material Suppliers, Distributors Part of Recent M&A Activity
    Buyers Guide
    Company Capabilities
    Distributor Guide
    Add New Company
    International Buyers Guide Companies
    Eagle Specialty Products

    Active Minerals

    Clariant Additives

    Siltech Corporation

    Pilot Chemical Company
    Industry Events
    Webinars
    Live From Show Event
    Top Events
    Surface Finishing Mexico 2021

    Cleveland Coatings Society Zoom Meeting

    Cleveland Coatings Society Zoom Meeting

    PCI Powder Coating Week

    Southern Society for Coatings Technology Annual Meeting and Technical Conference
    Companies
    White Papers/Tech Papers
    Product Spec Sheets
    Equipment
    Literature/Brochures
    Videos
    International Buyers Guide Companies
    Eagle Specialty Products

    Keim Additec Surface USA LLC

    Active Minerals

    Clariant Additives

    Shepherd Color Company, The
    • Magazine
      • Current / Back Issues
      • Features
      • Editorial
      • Business Corner
      • Digital Edition
      • eNewsletter Archive
      • Editorial Guidelines
      • Subscribe Now
      • Advertise Now
    • Breaking News
    • Directories
      • Buyers Guide
      • Distributor Guide
      • Corporate Capabilities
      • Trade Associations
      • Add Your Company
    • Markets & Technologies
      • Adhesives and Sealants
      • Aerospace Coatings
      • Architectural Coatings
      • Automotive Coatings
      • Automotive Refinish
      • Business Operation
      • Color Trends & Forecast
      • Construction Chemicals
      • Corrosion Control
      • Industrial Coatings
      • Laboratory Equipment
      • Marine Coatings
      • Market Trends & Forecast
      • Powder Coatings
      • Production Equipment
      • Radcure Coatings
      • Special Purpose Coatings
      • Wood Coatings
      • "Green" Coatings
    • Raw Materials
      • Additives
      • Binders
      • Pigments
      • Solvents
    • World Reports
      • Africa Report
      • China Report
      • India/Asia Pacific Report
      • Europe Report
      • Latin America Report
      • Market Research
      • Russian Report
    • Top Companies
    • Online Exclusives
    • Slideshows
    • Experts Opinions
    • Blog
    • eBook
    • Infographics
    • Videos
    • Podcasts
    • Whitepapers
    • Jobs
    • Microsites
      • Companies
      • White Papers/Tech Papers
      • Product Spec Sheets
      • Equipment
      • Literature/Brochures
      • Videos
    • Events
      • Industry Events
      • Live From Show Event
      • Webinars
    • About Us
      • About Us
      • Contact Us
      • Advertise With Us
      • Privacy Policy
      • Terms of Use
    Features

    2006 M&A Update

    While 2006 showed signs of a pickup in merger and acquisition activity in the paint and coatings industry, buyers nevertheless remain cautious.

    Stephen Einhorn & Jaclyn Christiansen02.06.07
    During 2006, there were 17 merger and acquisition transactions in the U.S. versus 12 in 2005. Most transactions demonstrated a desire to strengthen market presence, either in a specialized niche, or a geographic area.

    PPG was the most active acquirer during 2006 purchasing Ameron Protective Coatings, Spectra-Tone, Eldorado Chemical and Shanghai Sunpool (China).

    The PPG/Ameron transaction was not a surprise as the fit was perfect. PPG's strategy has been to focus on its coatings business, and the Ameron acquisition, at a price of approximately $115 million, was a major transaction in the industry. The acquisition expanded PPG's protective coatings sales into Europe and Australia enhancing their global presence. The deal also included a marine business, for which PPG previously had a minimal presence.

    The acquisition of Spectra-Tone, a smaller transaction, increased PPG's sales of architectural paint and continued the company's strategy of expansion through acquisition. At the time of the acquisition, Spectra-Tone operated 22 stores in the western U.S.

    In May, PPG acquired privately held Eldorado Chemical, a manufacturer of paint strippers and technical cleaners for the aerospace industry. The acquisition included formulas, brand names and product certifications. Eldorado's products featured environmentally advanced technologies and were complementary to PPG's aerospace business. Eldorado's customers included the military, airlines and OEMs.

    China is Hot



    PPG's acquisition of Shanghai Sunpool is an example of the continued expansion by U.S. companies into the Chinese paint and coatings market. Shanghai Sunpool is a manufacturer and distributor of coatings and building materials, and distributes PPG's Master's Mark architectural paint. The acquisition included trade names and manufacturing and warehousing assets, and enhanced PPG's production and distribution capabilities in China.

    Other major paint firms have taken an interest in China as well. This includes Akzo Nobel, who acquired full control of its Asian Akzo Nobel Chang Cheng Coatings joint venture in May. This was a powder coatings operation in China, Taiwan and Hong Kong with six manufacturing sites, including four in China.

    DuPont announced it will open a coatings plant in Shanghai, China to meet increased sales. The Shanghai plant is DuPont's tenth coatings investment in China in response to that growing market.

    In June Valspar agreed to acquire a majority of the share capital of Huarun Paints, one of China's largest independent paint companies. Huarun's 2005 sales were approximately $180 million, which will significantly bolster Valspar's presence in wood and furniture coatings in China.

    Valspar jumped into the acquisition arena again in October with the purchase of H.B. Fuller's powder coatings business. The acquisition gave Valspar an entry into the European market and fits well with its North American powder coatings business.

    In August, Akzo Nobel acquired The Flood Company, a leading independent wood finishes business in the U.S. With sales of approximately $55 million, Flood will increase Akzo's strength in the U.S. wood care market.

    In October Nippon Paint finalized its purchase of the automotive coatings business of Rohm and Haas. The acquisition, along with purchases of Rohm and Haas' share of the joint venture Morton Nippon Coatings, gives Nippon a leading position in the North American plastic auto coatings market.

    Another significant U.S. paint transaction during 2006 was the acquisition of Color Wheel Paint by PPI, the U.S. subsidiary of Comex. Color Wheel is a major Southeast manufacturer of architectural paint with 37 stores and a strong brand name. The acquisition shows Comex's continued strategy of increasing its presence in North America.

    In August, Quest Specialty Chemicals, through Huron Capital Partners, acquired Matrix System Automotive Finishes. Matrix is an independent supplier of auto aftermarket refinish coatings and was combined with Quest's Raabe Corporation subsidiary. The acquisition strengthens Quest's presence in niche specialty performance coatings.

    Another example of an acquisition of a niche coatings company was ITW's purchase of CFC International. CFC is a specialty coated film manufacturer which includes transferable, multi-layer coatings for use in holographics, packaging, furniture, pharmaceuticals and transaction cards.

    In August, Insl-X Poducts acquired Trinity Coatings' wood coatings division, which fits in with Insl-X's goal of strengthening its wood coatings business and is a good add-on to the acquisitions of Coronado and Lenmar.

    Michelman made two acquisitions during 2006. In May, the firm acquired Wagers Corporation, which enhanced Michelman's portfolio of water-based decorative coatings. In June, Michelman acquired Fischer Pro, a manufacturer of non-skid coatings for corrugated cartons and bags. Both of these acquisitions were attractive to Michelman due to the technology and reputation of the acquired businesses.

    RPM made one acquisition last year which was of Tamms Industries. Tamms is a manufacturer of high performance restoration protection and waterproofing products for the concrete construction industry. This business fits in well with RPM's Euclid Chemical concrete and masonry construction chemicals.

    Altana's acquisition of Rad-Cure strengthened its market presence in North America with its sales of overprint UV curable coatings and adhesives for the paper and packaging industry.

    The above transactions illustrate the continued trend of "sticking to what one knows best" and increasing market share in growing product sectors or regions. It also appears that "China is hot, but Europe is not."

    During 2006 most paint companies improved their margins, and buyers continue to be ready for more acquisitions. However, buyers are still cautious and are taking their time to confirm their acquisition decisions, making sure that every question and issue has been taken into consideration. This prolongs the deal process, but in the end leads to more successful transactions.

    In general, sales and profits were more robust during the first half of 2006 and this gave sellers the ammunition to better justify their offering prices and buyers more confidence to put forth market value offers. As a ballpark guide, prices for small and reasonably profitable acquisitions remain at approximately five to six times EBITDA. Larger companies with outstanding results and growth prospects in our field are selling for up to eight times EBITDA.


    Stephen Einhorn is president and Jaclyn Christiansen is vice president of Einhorn Associates, Inc., Milwaukee, WI, where they have specialized in paint and coating's mergers and acquisitions for many years. They can be contacted at einhorn@einhornassociates.com.
    Related Searches
    • merger
    • paints
    • masonry
    • valspar
    Related Knowledge Center
    • Wood Coatings
    • Automotive Coatings
    • Powder Coatings

    Related Features

    • Industrial Coatings | Powder Coatings
      High Performance Pigments Market

      High Performance Pigments Market

      With an overall value of $4.76 billion, the market for high performance pigments is poised for steady growth worldwide.
      Kerry Pianoforte, Editor 08.10.16

    • Architectural Coatings | Industrial Coatings | Marine Coatings | Wood Coatings
      Asia Pacific Report

      Asia Pacific Report

      Key findings indicate that the market for paint and coatings in the Asia Pacific region is poised for more growth.
      08.10.16

    • Architectural Coatings | Wood Coatings
      Coatings World and Ringier Events Host 14th Annual China Coatings Summit

      Coatings World and Ringier Events Host 14th Annual China Coatings Summit

      This annual event jointly organized by Coatings World and Ringier was held May 24-25 in Shanghai.
      Kerry Pianoforte, Editor 07.15.16


    • Additives | Adhesives and Sealants | Wood Coatings

      Resins Supplier Directory

      Here is a look at the latest offerings from select resins suppliers. For more information on the products listed, please cont
      07.14.16

    • Automotive Coatings | Industrial Coatings | Pigments | Powder Coatings | Price Increases
      Metallic Pigments

      Metallic Pigments

      Diversified trends in automotive colors and increased consumer competition are driving this market forward.
      Catherine Diamond, Associate Editor 06.08.16

    • Architectural Coatings | Automotive Coatings | Automotive Refinish | Industrial Coatings | Powder Coatings
      Latin America Paint And Coatings Update 2016

      Latin America Paint And Coatings Update 2016

      Regional demand is likely to exceed GDP in the region.
      Charles W. Thurston, Latin America Correspondent 06.08.16


    • Industrial Coatings | Powder Coatings
      The Industrial Coatings Market

      The Industrial Coatings Market

      The market for industrial and protective coatings has potential for growth in a number of key markets.
      Kerry Pianoforte, Editor 06.08.16

    • Additives | Adhesives and Sealants | Architectural Coatings | Powder Coatings | Solvents
      Resins Update

      Resins Update

      All segments of this market are expected to grow steadily, particularly in Asia-Pacific.
      Catherine Diamond, Associate Editor 04.08.16

    • Additives | Radcure Coatings | Wood Coatings

      Radiation-Curing Technologies

      ...
      Kerry Pianoforte, Editor 04.08.16


    • Wood Coatings

      RADTECH 2016 to Focus on End Uses, New Technologies

      Leaders from P&G, Ford Motor, Toyota, PepsiCo and Nestlé will provide insights on using energy curable technologies.
      David Savastano, Ink World Editor 04.08.16

    • Wood Coatings
      LED Curing Technology for Coatings

      LED Curing Technology for Coatings

      ...
      Stacy Hoge, Marketing Communications Manager, Phoseon Technology 04.08.16

    • Additives | Architectural Coatings | Corrosion Control | Industrial Coatings | Powder Coatings
      The 43rd Annual Waterborne Symposium

      The 43rd Annual Waterborne Symposium

      This annual event featured 47 presentations on a variety of topics related to surface coatings,
      Kerry Pianoforte, Editor 03.21.16


    • Additives | Automotive Coatings | Pigments | Powder Coatings
      Automotive OEM Coatings Market

      Automotive OEM Coatings Market

      Demand is being driven by both economic and environmental factors.
      Catherine Diamond, Associate Editor 03.18.16

    • Automotive Coatings | Automotive Refinish | Industrial Coatings | Marine Coatings
      CEO Forum

      CEO Forum

      ...
      Kerry Pianoforte, Editor 03.18.16

    • Architectural Coatings | Pigments | Solvents | Wood Coatings
      Wood Coatings Market

      Wood Coatings Market

      Wood coatings manufacturers continue to enjoy positive growth as a result of a robust housing market.
      Kerry Pianoforte, Editor 02.12.16

    Trending
    • Hempel Announces Global Price Increase
    • Hempel Hires Global Head Of Renewable Energy
    • AkzoNobel Completes Titan Paints Acquisition
    • Raw Material Price Increases Pile Pressure On Paint Manufacturers
    • Nouryon Agrees To Divest Salt Specialties Business To Salins Group
    Breaking News
    • PPG Appoints John Stephenson as Director, Acquisition Integration
    • Hempel Reports 2020 Annual Results
    • AkzoNobel Completes Titan Paints Acquisition
    • Terra Firma, Wanhua Announce New Distribution Partnership
    • Mule-Hide Products Co. Promotes Steven Litaker to Territory Manager
    View Breaking News >
    CURRENT ISSUE

    February 2021

    • Mixing Equipment Directory
    • The Wood Coatings Market
    • Antimicrobial Coatings Market
    • View More >

    Cookies help us to provide you with an excellent service. By using our website, you declare yourself in agreement with our use of cookies.
    You can obtain detailed information about the use of cookies on our website by clicking on "More information”.

    • About Us
    • Privacy Policy
    • Terms And Conditions
    • Contact Us

    follow us

    Subscribe
    Nutraceuticals World

    Latest Breaking News From Nutraceuticals World

    Low Levels of Vitamin D and Calcium Linked to COVID-19 Severity
    Probiotic Evidenced to Assist Digestive Recovery from a Complex Surgery
    AHPA Submits Comments to FDA on Proposed Traceability Rule
    Coatings World

    Latest Breaking News From Coatings World

    Chromaflo Technologies Adds Benjamin Woeste as Territory Sales Manager
    AOC Announces EMEA Price Increase
    Mule-Hide Products Co. Introduces Seal-Fast Liqui-Flash
    Medical Product Outsourcing

    Latest Breaking News From Medical Product Outsourcing

    NAMSA Acquires American Preclinical Services
    Quidel's QuickVue At-Home COVID-19 Test Earns EUA
    Memic Receives FDA Marketing Authorization for Hominis
    Contract Pharma

    Latest Breaking News From Contract Pharma

    Fusion Pharmaceuticals Acquires IPN-1087
    Strata Oncology Unveils Strata PATH Trial
    Alimentiv Acquires McDougall Scientific
    Beauty Packaging

    Latest Breaking News From Beauty Packaging

    IT Cosmetics Supports Women’s Confidence
    Inter Parfums Reports a Strong Fourth Quarter
    Universal Engraving Announces New President
    Happi

    Latest Breaking News From Happi

    Croda International Acquires Alban Muller
    Givaudan Active Beauty Launches Omegablue
    Sozio Acquires Scentessence
    Ink World

    Latest Breaking News From Ink World

    Massilly North America Adds Koenig & Bauer MetalStar 3 Metal Decorating Press
    Hydrocarbon Solvents Market to Surpass $8.1 Billion by 2030
    Access Direct Mail Doubles Revenue with SCREEN's Truepress Jet520HD
    Label & Narrow Web

    Latest Breaking News From Label & Narrow Web

    Abbott Label installs Domino K600i dual bar digital UV inkjet printer
    Crossmark turns to Eagle Systems for cold foil
    Maxcess launches Tidland PressureMax Airshaft Pressure Monitoring System
    Nonwovens Industry

    Latest Breaking News From Nonwovens Industry

    Domtar Completes Sale of Personal Care Business
    Mitsui to Sell Chinese Nonwovens Business
    Dr. J's Disinfectant Wipes Approved for Distribution in CA
    Orthopedic Design & Technology

    Latest Breaking News From Orthopedic Design & Technology

    FDA Approves Accufix Surgical's Accu-Joint Hemi Implant
    FDA OKs Q-Collar Device to Protect Athletes’ Brains During Head Impacts
    SeaSpine Releases Reef TO (TLIF Oblique) Interbody System
    Printed Electronics Now

    Latest Breaking News From Printed Electronics Now

    Comercial Kywi Improves Customer Service, Front-Store Operations with Zebra Mobile Solution
    Global Printed Circuit Board Market Projected to Reach $69.32 Billion by 2027
    Global Smart Glass Market to Register 6.8% CAGR Between 2021-28: Grand View Research

    Copyright © 2021 Rodman Media. All rights reserved. Use of this constitutes acceptance of our privacy policy The material on this site may not be reproduced, distributed, transmitted, or otherwise used, except with the prior written permission of Rodman Media.

    AD BLOCKER DETECTED

    Our website is made possible by displaying online advertisements to our visitors.
    Please consider supporting us by disabling your ad blocker.


    FREE SUBSCRIPTION Already a subscriber? Login