CVC Capital Partners is acquiring a minority stake in Danish paint manufacturer Hempel for $1.08 billion, marking its first external investment in the company in 75 years.

Overview of the Deal

CVC Capital Partners is set to acquire a minority stake in Hempel, a Danish manufacturer of paints and protective coatings, valuing the company at approximately $3.6 billion. This investment marks a significant milestone as it introduces the first external shareholder to Hempel in 75 years. Previously, the company was solely owned by the Hempel Foundation. The Hempel Foundation is welcoming CVC's investment to inject capital, enabling Hempel to focus on growth initiatives and potential acquisitions that will facilitate entry into new segments and geographical markets. Given Hempel's robust growth trajectory in recent years, CVC plans to hold this investment long-term, assisting Hempel in developing sustainable technologies that benefit its customers.

Information on the Target

Hempel A/S specializes in producing paints and coatings primarily for the marine, industrial, and yacht sectors, complemented by protective and decorative paints. Established in 1915 and headquartered in Copenhagen, Denmark, Hempel has built strong brand loyalty due to its extensive expertise in the protective coatings industry. This proficiency has enabled Hempel to cultivate lasting relationships with clients.

The company continues to innovate in the paint and coatings market by being one of the first to emphasize renewable energy applications since the 1980s. With manufacturing facilities located in countries such