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Hempel A/S has signed an agreement to acquire 65% of one of Germany’s leading manufacturers of decorative paint, JW Ostendorf (JWO).
Following closing of the transaction, JWO becomes part of the worldwide Hempel family, and is thus an evident factor for Hempel’s continuing ambition to grow and for participation in the ongoing global consolidation of the industry.
Branding-wise, JWO becomes ‘A part of Hempel’.
The investment in JWO is a significant reinforcement in Hempel’s third strategic business area – the decorative business.
Hempel Group President & CEO Henrik Andersen said:
"Our decorative business is relatively new and has therefore naturally been a bit overshadowed by the company’s two other strategic business areas, Marine and Protective. This is now over.”
"With the investment in JWO, one of the world’s leading manufacturers of decorative paint, we have grown our decorative business significantly and sent a signal that we are ready to do more – in Europe and globally.”
JWO has a unique position in the market as the only private label specialist in Europe.
Across 20 European countries and five non-European countries, JWO works to drive forward the development of retail brands.
The company has approximately 750 employees and is located in Coesfeld, North Rhine Westphalia, Germany, and in Cestas, France.
"I have great expectations of JWO and I have great expectations about JWO joining forces with another leading European decorative company, UK-based Crown Paints – also part of the Hempel Group.
"In close collaboration, both companies will develop and grow the Hempel family’s decorative business in Europe,” said Henrik Andersen.
JWO is a family-owned, tradition bound company where the former CEO and majority shareholder Michael Ostendorf and his sons Jan and Jens Ostendorf will continue to be involved in the business as shareholders.
Going forward, JWO will be managed on a daily basis by Jan and Jens Ostendorf, continuing the entrepreneurial tradition, the values and the relationships that have shaped the company.
Jan and Jens Ostendorf will be responsible for the North and South European markets respectively.
Michael Ostendorf said: "It is with great pride and joy that we now become part of the Hempel Group.
"I particularly look forward to the close collaboration we are forming with Crown Paints.
"By joining forces, we create a strong platform for continued expansion in the European decorative market.”
JWO has grown in Europe through the takeover of the French paint manufacturer, Renaulac with its well-known premium brand, also carrying the name Renaulac.
Renaulac will strengthen the Hempel Group’s position in France.
Following closing of the transaction, Joe Devitt, CEO of Crown Paints and new top executive in Hempel Decorative Europe, will be responsible for ensuring that Crown Paints and JWO join forces.
JWO and Crown will continue to serve their customers as two distinct entities, but in doing so, both will draw from the intellectual and material resources of both partners, eg brand portfolio, production facilities and common synergies, such as in the supply chain.
Being able to produce the highest quality of coatings directly in tomorrow’s key markets of Germany, France and UK offers a unique advantage.
