Hempel A/S - Experts & Thought Leaders

The performance of Hempel’s cutting-edge silicone-based hull coating solution, Hempaguard X7, and its ability to accelerate decarbonisation efforts in the maritime industry are now third-party validated by DNV. Since its launch in 2013, Hempaguard has provided vessels around the world with significant energy efficiency compared to the industry average and contributed to substantial reductions in carbon emissions. With this external validation by DNV, Hempel is now better able to demonstrate the value of Hempaguard to its customers. Hempaguard high performance marine coating solution The introduction of even more ambitious decarbonisation targets, set by the IMO in 2023 "At Hempel, we’ve long known that Hempaguard stands out in the industry for its superior performance and environmental benefits, helping our customers save costs and improve their bottom line. But DNV’s third-party validation and verification is an important milestone for us to reach, and it only reinforces the credibility of Hempaguard’s unmatched performance in the market," says Alexander Enström, Executive Vice President and Head of Marine at Hempel A/S. The introduction of even more ambitious decarbonisation targets, set by the International Maritime Organization (IMO) in 2023, helps fuel the demand for Hempaguard, as many stakeholders in the industry search for the best solutions to help reduce their fuel consumption and carbon footprint, here and now. DNV’s verification confirms Hempaguard’s performance DNV’s verification objectively confirms Hempaguard’s outstanding performance when it comes to the reduction of CO2e emissions from the maritime industry. In addition, fuel savings of up to 20 per cent and average speed loss of 1.4 per cent have been validated by the third party. "Our customers’ demand for Hempaguard clearly confirms the impact of this premium anti-fouling solution, and we recently passed yet another significant milestone: over 4000 applications worldwide with Hempaguard, equivalent to taking approximately 5,125,978 cars off the roads in saved CO2e emissions," concludes Alexander Enström.

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. The partnership with CVC will support the acceleration of Hempel’s organic growth plan, bringing complementary competencies and resources to support Hempel’s growth and value creation plans. In addition, Hempel will benefit from CVC Fund’s experience in making and integrating transformational acquisitions, as the business continues to expand into new segments and geographies. Potential acquisition opportunities 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 global company within the paints and coatings industry. CVC Funds as the minority investor will subscribe to new shares Richard Sand, Chair of the Hempel Foundation Board of Directors commented: “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. 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. 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.” Transformative acquisition opportunities “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,” says 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.” Achieving growth ambitions Christoffer Sjøqvist, Partner and Head of CVC Denmark, said, “Hempel’s development over the years has been very impressive and we are delighted to be joining their ongoing growth story. 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.” Michael Lavrysen, Partner at CVC, commented: "CVC Strategic Opportunities invests in high-quality businesses with longer growth horizons, often partnering with likeminded families and foundations looking for specific expertise to advance expansion. Our investment in Hempel aligns perfectly within this strategy, especially the partnership with the Hempel Foundation and we are eager to begin to leverage CVC’s expertise to support the continued success of this world-class business." 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.

Hempel A/S is a first mover within the paints and coatings industry, sharing carbon footprint data on its Product Data Sheets. Hempel provides Sustainability Product Scorecards to support customers in delivering on their sustainability commitments. Hempel is committed to supporting its customers on their sustainability journeys, and as part of its Double Impact strategy, aims to hold sustainability leadership positions in its chosen segments. By providing sustainability data alongside its solutions, Hempel is sending a strong signal to its customers that it has a clear focus on sustainability. Sustainability Product Scorecards Sustainability Product Scorecards are available for all of Hempel’s products Sustainability Product Scorecards are a tool to quickly and easily measure the overall environmental impact of various paint systems. A comprehensive evaluation of the sustainability issues facing the coatings industry resulted in the selection of eight metrics, included in the Scorecard. Sustainability Product Scorecards are available for all of Hempel’s products, providing its customers with sustainability decision-points when deciding on which Hempel solution to choose. Carbon Footprint Data included on Product Data Sheets To support their customers further, Carbon Footprint Data has now been included on the Product Data Sheets of over 160 products, spanning the Marine, Energy and Infrastructure assortments. The ambition is to cover all Hempel’s solutions in the Marine, Energy and Infrastructure industries in the first quarter of 2024. “Sustainability is not only our journey,” explains Monica Li Avram, Director, Solution Management – Infrastructure at Hempel A/S, adding “We see an increased number of requests from our customers on detailed sustainability data on our solutions, both as a requirement for their projects, or as a differentiator." She continues, “We have been providing our customers with the Carbon Footprint Data related to their annual spend or a specific project for a while now. It was a natural next step to include the information directly on our Product Data Sheets.” Scope of the Carbon Footprint The scope of the Carbon Footprint on the Product Data Sheets includes raw materials The scope of the Carbon Footprint on the Product Data Sheets includes raw materials, in-bound transport to the Hempel factory, Hempel manufacturing processes, and any Volatile Organic Compounds (VOCs) emitted during and after the application of the product, thereby accounting for the most significant impacts across the value chain. “We planted a seed a few years ago, to develop a Sustainability Product Scorecard to account for Environment, Circularity and Chemicals metrics across our product assortment, using a Life Cycle Assessment approach where relevant. Sharing sustainability data in this way enables fair comparison, allowing our customers to consider both the efficiency and durability of Hempel’s coatings systems,” says Emily Adair, Senior Sustainability Project Manager. Carbon Footprint Reports for Hempel’s customers Emily Adair adds, “Our customers have welcomed the transparency and the Scorecard is actively used across our company from customer engagements to steering the course for our future solutions." She continues, "The tree has grown to include Carbon Footprint Reports for our customers, and this new section on our Product Data Sheet puts the data directly into their hands.”