Global paints and coatings supplier Hempel A/S (Copenhagen, Denmark) recently signed an agreement to divest its J.W. Ostendorf and Renaulac business in France and Germany to Fidelium Partners, subject to relevant approvals.
The sale of Hempel’s predominantly private label business marks the next step in its growth strategy and brings a strategic focus on growing the branded business in its decorative customer segment, according to the company.
Hempel acquired the predominantly private label business, J.W. Ostendorf and Renaulac, in 2018. Since then, Hempel says it has built a portfolio of decorative brands through further acquisitions. These now make up the majority of Hempel’s decorative segment and comprise Farrow & Ball, Crown Paints, Hempel, and Wattyl.
“In pursuit of achieving Hempel’s ambitious Double Impact strategy, we have made the strategic decision to focus on our full-service Deco brands within our decorative segment,” says Ana Henriques, executive vice president and head of the decorative business segment.
“The consequence of that focus is the sale of J.W. Ostendorf and Renaulac,” she adds. “In Fidelium Partners, we have found a committed new prospective owner with a long-term interest in growing the business. We believe that we have found a good new home for our around 500 colleagues from J.W. Ostendorf and Renaulac.”
The sale is expected to be completed in the 2024 third quarter, pending relevant approvals. Transactional details are confidential, according to the terms of the purchase agreement.
Source: Hempel A/S, www.hempel.com.