Mergers and acquisitions: Deceleration in the coatings industry
After our first overview of company acquisitions and mergers in the coatings and neighboring industries, we are now able to present a much larger overview this year. However, this is not necessarily due to the fact that there were more takeovers.
Whereas in July 2018 we had only examined the first half of the year, this time we can present an overview of an entire year, from mid-2018 to mid-2019. The list is correspondingly longer. All in all, the transaction dynamic seems to have declined.
This is not only the case in the coatings industry, but also in the chemical industry as a whole. In the first four months of the year, 225 takeovers and mergers in the chemical industry were counted by Grace Matthews, an investment bank specializing in chemicals. In the same period of 2018 there were still 328.
Transactions of coatings manufacturers
Despite the limited comparability due to the different time periods, it is noticeable that the manufacturers of paints and varnishes have been rather hesitant to buy in. In the first two quarters of 2018, Grace Matthews counted 40 takeovers and mergers. From mid-2018 to mid-2019, it was a little more at 48, but over a much longer period.
| Acquisitions of Coatings manufacturers (examples) | ||||
|---|---|---|---|---|
| Buyer | Country | Target | Country | Segment |
| Akzo Nobel | The Netherlands | Swire Industrial Limited | China | Architectural coatings |
| Akzo Nobel | The Netherlands | Xylazel | Spanien | Architectural coatings |
| Berger Paints | India | Saboo Hesse Wood Coatings | India | Wood coatings |
| Epple Druckfarben | Germany | Pulse Printing Products | UK | Coatings and Adhesives |
| Epple Druckfarben | Germany | PCO Europe | The Netherlands | Printing chemicals |
| Mipa | Germany | Rala Lackfabrik | Germany | Industrial coatings |
| Mipa | Germany | Landshuter | Germany | Industrial coatings, Wood coatings, metal coatings |
| Nippon Paint | Japan | Betek Boya | Turkey | Architectural coatings |
| PPG Industries | USA | Hemmelrath Lackfabrik | Germany | Automotive |
| PPG Industries | USA | Hodji Coatings | The Netherlands | Industrial coatings |
| Showa Denko K.K. | Japan | Ilag | Switzerland | Industrial coatings, non-stick coatings |
| Teknos | Finland | Drywood Norge | Norway | Architectural coatings |
Transactions of raw material suppliers
It is also notable that the raw material suppliers slowed down. Grace Matthews counted 38 transactions with binder and polymer manufacturers in the first two quarters of last year. According to preliminary figures, there were only eleven transactions in the same period in 2019. Our sample overview also includes raw material suppliers from other areas, such as additives.
| Acquisitions of Raw material suppliers (examples) | ||||
|---|---|---|---|---|
| Buyer | Country | Target | Country | Segment |
| DIC | Japan | Ideal Chemi Plast | India | Resins |
| Harke Group | Germany | Addi-Tec | UK | Additives |
| Henkel | Germany | Molecule Corp | USA | 3-D printing |
| Omnova Solutions | USA | Resiquímica | Portugal | Binders |
| Petronas Chemicals Group | Malaysia | BRB | The Netherlands | Raw materials |
Transactions in the adhesives industry
The adhesives industry has seen 15 transactions since mid-2018 to date. In the first half of 2018 alone, the figure was 22.
| Acquisitions in the adhesives industry (examples) | ||||
|---|---|---|---|---|
| Buyer | Country | Target | Country | Segment |
| Ardex | Germany | Nexus | New Zealand | Floor adhesives |
| Meridian Adhesives Group | USA | W.F. Taylor LLC | USA | Floor adhesives |
| Meridian Adhesives Group | USA | Evans Adhesive Corporation | USA | Floor adhesives |
Distributor transactions
Developments among distributors are similar, albeit less pronounced. In the last 12 months, 32 transactions have been recorded so far by Grace Matthews. In only six months at the beginning of 2018, 20 transactions had already taken place.
| Acquisitions of distributors (examples) | ||||
|---|---|---|---|---|
| Buyer | Country | Target | Country | Segment |
| Bodo Möller Chemie Group | Germany | Acanthe | France | Raw materials |
| Brenntag | Germany | New England Resins & Pigments Corporation | USA | Raw materials |
| Brenntag | Germany | Canada Colors and Chemicals | Canada | Raw materials |
| Brenntag | Germany | Alphamin | Belgium | Raw materials |
| IMCD | The Netherlands | Velox | Germany | Raw materials |
