Photo credit: Hempel
CVC Funds is becoming a minority investor in the coating solution supplier Hempel A/S which is owned by the Hempel Foundation.
The Hempel Foundation will continue to be the majority shareholder in Hempel A/S with the transaction expected to close in the second half of 2024, subject to regulatory approval.
The move by Hempel Foundation to invite CVC Funds to become an investor in Hempel A/S is designed to help support its organic growth strategy and value creation plan, by increasing investment in the development of new, cutting-edge sustainable technologies.
Hempel will also benefit from CVC’s deep experience of investing in, and growing businesses organically and through strategic acquisitions.
CVC Funds, a global private markets manager with approximately €186bn of assets under management, as the minority investor will subscribe to new shares, equating to a stake in Hempel A/S of up to 30% over time.
CVC Funds will invest in Hempel though its Strategic Opportunities platform, which was established to invest in businesses over longer time horizons.
Michael Hansen, Group President and CEO of Hempel A/S said: “We have already made solid progress on our strategy of driving profitable growth, both organically and inorganically through M&A activity, delivering record-breaking results in 2023.
“This new partnership will considerably strengthen our industry position, will ignite further growth in our winning brands and means we are well-placed to seek out transformative acquisition opportunities.”
From the CVC side, Michael Lavrysen, partner at CVC, commented: “CVC Strategic Opportunities invests in high-quality businesses with longer growth horizons, often partnering with likeminded families and foundations looking for specific expertise to advance expansion.”
