CVC Funds will become a minority investor in Hempel A/S to help accelerate Hempel¡¯s ambitious long-term organic and inorganic growth strategy.

The Hempel Foundation, in agreement with the Hempel A/S Board of Directors, has agreed to invite CVC Funds to become a minority investor in Hempel A/S to help accelerate Hempel¡¯s ambitious long-term organic and inorganic growth strategy.

CVC is a leading global private markets manager with approximately ¢ã186 billion of assets under management and a global network of 29 offices throughout EMEA, the Americas and Asia. Hempel will benefit from CVC¡¯s experience of investing in, and growing businesses organically and through strategic acquisitions. The Hempel Foundation continues to be the majority shareholder in Hempel A/S.

CVC Funds as the minority investor will subscribe to new shares, equating to a stake in Hempel A/S of up to 30% over time. This investment will also strengthen Hempel¡¯s ability to develop new, cutting-edge sustainable technologies for the benefit of its customers and to execute potential acquisition opportunities, to accelerate its growth journey towards becoming a leading global company within the paints and coatings industry.

¡°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,¡± said Richard Sand, chair of the Hempel Foundation Board of Directors. ¡°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.

¡°It is our clear expectation that the company¡¯s value, and therefore the value of the shares belonging to the Hempel Foundation, will increase more over the coming five to ten years with CVC as new minority shareholder than without,¡± Sand added. ¡°This, in turn, will also increase the dividends that the Hempel Foundation receives, strengthening our future opportunities for philanthropic work. I am therefore pleased to welcome CVC to Hempel.¡±

¡°The competitive landscape is moving at an increasingly faster rate in the paint and coatings industry and we need to continue to grow to remain at the forefront,¡± said Michael Hansen, group president and CEO of Hempel A/S. ¡°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.¡±

¡°Hempel¡¯s development over the years has been very impressive and we are delighted to be joining their ongoing growth story,¡± noted Christoffer Sjøqvist, partner and head of CVC Denmark. ¡°We are excited to partner with the Hempel Foundation and Michael and his team, and look forward to supporting Hempel with CVC Funds¡¯ capital and experience to help them achieve their growth ambitions

The Hempel Foundation will continue to be the majority shareholder in Hempel A/S. The transaction is expected to close in the second half of 2024 and is subject to regulatory approval.