Hempel Group, the parent company of Crown Paints, has announced it will be acquiring a 65 per cent stake in leading German paint manufacturer J.W. Ostendorf (JWO) as part of a strategic bid to boost its global decorative business.
Operating throughout 20 European and five non-European countries, family-owned JWO is one of Germany’s leading decorative paint manufacturers and is the only private label specialist in Europe. Investing significantly in cutting-edge technology and environmentally friendly production, the North Rhine Westphalia manufacturer is also certified by LGA (derived hygiene standards for paint as for the food industry).
The deal also brings with it the appointment of Joe Devitt, CEO of Crown Paints, as the new top executive in Hempel Decorative Europe. Following closing of the transaction, Joe will be responsible for bringing Crown Paints and JWO together, aligning the businesses, sharing knowledge and expertise and identifying synergies. Whilst both businesses will continue to trade independently, as a decorative business of the Hempel Group they will have a leading position in the European Market.
Joe Devitt comments: “Both businesses are passionate about paint and about serving our customers. We share many business values and our market coverage, know-how and production facilities are extremely complementary. The joint venture is well placed to drive consolidation in the highly competitive market of decorative paints and I am looking forward to working with JWO to further enhance our product offering throughout Europe.”
JWO also owns French paint manufacturer Renaulac, which now becomes a key asset for the Hempel Group, strengthening access to the French market.
Hempel Group President & CEO Henrik Andersen says: “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 JWO now sitting alongside Crown Paints we have significantly grown our decorative business and sent a signal that we are ready to do more – in Europe and globally.
“I have great expectations for the collaboration between JWO and Crown Paints and I am confident that the companies will continue to develop and grow the Hempel family’s decorative business in Europe,” says 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. The running of the business will pass to Jan and Jens Ostendorf who will be responsible for North and South European markets respectively.