Private equity CVC Funds buys into Hempel

The move by Hempel Foundation to bring CVC in as an investor into Hempel A/S is designed to help support both its organic growth strategy and to pursue merger and acquisition opportunities.

CVC will as a minority investor subscribe to new shares equating to up to a 30% stake in Hempel over time. The value of the investment was not revealed.

Richard Sand, Chair of the Hempel Foundation Board of Directors said that they believed the value of Hempel’s shares would increase more over the next five to 10 years with CVC as a minority shareholder than without.

“The Hempel Foundation has been the sole owner of Hempel for 75 years and has an ongoing commitment to secure Hempel’s financial base and ensure its future growth. After careful consideration, the Hempel Foundation has decided to welcome a minority investor that brings both unique experience and capital to support Hempel’s accelerated growth journey,” he stated.

Hempel Foundation will continue to be the majority shareholder in Hempel.

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.”

Related:Hempel launches underwater hull inspections using ROVs

From the CVC side, Partner Michael Lavrysen, 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.”

The transaction is expected to close in the second half of the year subject to regulatory approval.