Mergers & acquisitions in the coatings industry.The furious pace of merger and acquisition (M & A) activity in the chemical industry over the past two years has extended throughout all sectors including paints and coatings. Both private equity firms and strategic players have made acquisitions along the value chain from upstream From the consumer to the provider. See downstream. (networking) upstream - Fewer network hops away from a backbone or hub. For example, a small ISP that connects to the Internet through a larger ISP that has their own connection to the backbone is downstream from the larger commodity raw material suppliers to downstream From the provider to the customer. Downloading files and Web pages from the Internet is the downstream side. The upstream is from the customer to the provider (requesting a Web page, sending e-mail, etc.). formulators and paint manufacturers. Whether or not the activity will result in overall consolidation and improved pricing positions in the coatings industry is yet to be determined. The rebound rebound (rē´bownd), n/v 1. a recovery from illness. n 2. an outbreak of fresh reflex activity after withdrawal of a stimulus rebound adjective in the economy has enabled companies that suffered during the recent downturn Downturn The transition point between a rising, expanding economy to a falling, contracting one. downturn A decline in security prices or economic activity following a period of rising or stable prices or activity. to restructure and reorganize re·or·gan·ize v. re·or·gan·ized, re·or·gan·iz·ing, re·or·gan·iz·es v.tr. To organize again or anew. v.intr. To undergo or effect changes in organization. and divest To deprive or take away. Divest is usually used in reference to the relinquishment of authority, power, property, or title. If, for example, an individual is disinherited, he or she is divested of the right to inherit money. themselves of non-core businesses. Those organizations that weathered the difficult times well have bolstered bol·ster n. A long narrow pillow or cushion. tr.v. bol·stered, bol·ster·ing, bol·sters 1. To support or prop up with or as if with a long narrow pillow or cushion. 2. their operations with smaller, strategic bolt-on acquisitions. Private equity firms have acquired larger downstream businesses that have been on the selling block. In the coatings industry, 3-5% of firms are typically involved in M & A activity, according to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. Stephen Stephen, 1097?–1154, king of England (1135–54). The son of Stephen, count of Blois and Chartres, and Adela, daughter of William I of England, he was brought up by his uncle, Henry I of England, who presented him with estates in England and France and Einhorn, president of Einhorn Associates, a mergers and acquisitions firm specializing in coatings. "Activity has been pretty steady over the last year or so and should continue to be so in 2005," he says. In 2004, increasing raw material prices have been a major issue for paint and coatings companies. The profitability of many firms has been impacted as these companies have struggled unsuccessfully to pass on price increases to their customers, according to Mr. Einhorn. "A number of paint manufacturers have not been able to raise prices despite the dramatic increases in raw material and energy costs. As a result, their margins are being squeezed. Profitability has also declined for some of those companies that have managed to increase sales. Knowledgeable buyers in the industry understand that this situation is probably temporary because formulated for·mu·late tr.v. for·mu·lat·ed, for·mu·lat·ing, for·mu·lates 1. a. To state as or reduce to a formula. b. To express in systematic terms or concepts. c. chemical manufacturers, including paint and coatings companies, have been remarkably consistent in regaining re·gain tr.v. re·gained, re·gain·ing, re·gains 1. To recover possession of; get back again: regain one's strength. See Synonyms at recover. 2. their margins for the long run," he explains. Mr. Einhorn expects that in 2005 pricing will still remain an issue, despite the fact that the cost pressures associated with high oil prices should be subsiding sub·side intr.v. sub·sid·ed, sub·sid·ing, sub·sides 1. To sink to a lower or normal level. 2. To sink or settle down, as into a sofa. 3. To sink to the bottom, as a sediment. 4. by then. According to Mr. Einhorn, strategic, long-term Long-term Three or more years. In the context of accounting, more than 1 year. long-term 1. Of or relating to a gain or loss in the value of a security that has been held over a specific length of time. Compare short-term. buyers are more interested in the sales growth of a target company, while short-term Short-term Any investments with a maturity of one year or less. short-term 1. Of or relating to a gain or loss on the value of an asset that has been held less than a specified period of time. financial buyers tend to focus on earnings and profitability. Strategic buyers tend to be other chemical or coatings firms looking to enhance their core businesses. The more successful private equity firms (financial buyers) tend to require more due diligence Research; analysis; your homework. This term has caught on in all industries, because it sounds so "wired." Who would want to do analysis or research when they can do due diligence. See wired. and seek more unique technologies and market niches. Specialty chemicals A Specialty chemical is a chemical produced for a specialized use. They are produced in lower volume than bulk chemicals, of which petrochemicals, made from oil feedstocks, are the most common. However, both are produced in a chemical plant. are more knowledge- and technology-intensive. "Buyers familiar with the particular market sector will be interested in making acquisitions of this type," says Michael D. Brown
Michael DeWayne Brown (born November 8, 1954) was Undersecretary of Emergency Preparedness and Response (EP&R), a division of the Department of Homeland Security (DHS), a of The ChemQuest Group, Inc., a management consulting Noun 1. management consulting - a service industry that provides advice to those in charge of running a business service industry - an industry that provides services rather than tangible objects firm located in Cincinnati, OH. Private equity (PE) firms, on the other hand, invest with short-term gain Short-term gain (or loss) A profit or loss realized from the sale of securities held for less than a year that is taxed at normal income tax rates if the net total is positive. in mind and are interested in more upstream commodity players. "These companies are often capital intensive with simpler chemistry, and PE firms can improve the cost structure in order to get a return on their investment in a much shorter period of time," notes Todd Todd , Sir Alexander Robertus 1907-1997. British chemist. He won a 1957 Nobel Prize for his study of nucleic acids and nucleotide structures. Muhleman, financial analyst with The ChemQuest Group. Much of the recent M & A activity has taken place in Europe. Deutsche Bank Deutsche Bank AG (IPA: /'dɔɪ.tʃə/[1]) (ISIN: DE0005140008, NYSE: DB) (English: German Bank reported in December 2003 ("Chemical/Specialty M & A Still Price Sensitive") that there is a valuations gap between European European emanating from or pertaining to Europe. European bat lyssavirus see lyssavirus. European beech tree fagussylvaticus. European blastomycosis see cryptococcosis. and U.S. specialty companies, with U.S. companies having much higher valuations than their European counterparts. Private equity firms have found European companies It may never be fully completed or, depending on its its nature, it may be that it can never be completed. However, new and revised entries in the list are always welcome. This is a list of companies from the countries in the European Union. to have attractive valuations, while U.S. companies have been left to strategic buyers looking to bolster This article is about the pillow called a bolster. For other meanings of the word "bolster", see bolster (disambiguation). A bolster (etymology: Middle English, derived from Old English, and before that the Germanic word bulgstraz their market positions with smaller, bolt-on acquisitions. According to the report, "Private Equity in Chemicals," that was commissioned by the Chemical Industry Association (CIA CIA: see Central Intelligence Agency. (1) (Confidentiality Integrity Authentication) The three important concerns with regards to information security. Encryption is used to provide confidentiality (privacy, secrecy). ) and prepared by Cogency co·gent adj. Appealing to the intellect or powers of reasoning; convincing: a cogent argument. See Synonyms at valid. [Latin c Chemical Consultants Ltd., in January 2004, private equity investors are increasing their participation in M & A activity in the chemical industry. PE investors could account for as much as 30% of global transacted value, and an even higher amount (up to 40%) in Europe. The chemical industry is viewed as being more complex than other sectors in which private equity firms participate. However, there is continued interest placed by private equity firms in the chemical industry. This interest is attributed to the fact that the cyclicality and volatility of chemicals markets lead corporate managements to "undertake regular reassessment Reassessment The process of re-determining the value of property or land for tax purposes. Notes: Property is usually reassessed on an annual basis. You may request a "reassessment" if you disagree with your assessment. and rebuilding of the business model, leading to fragmentation (1) Storing data in non-contiguous areas on disk. As files are updated, new data are stored in available free space, which may not be contiguous. Fragmented files cause extra head movement, slowing disk accesses. A defragger program is used to rewrite and reorder all the files. , repositioning repositioning Laparoscopic surgery The changing of a Pt's position during a procedure to improve access or visualization of the operative field, which may be linked to complications, as it changes anatomic planes of operation. Cf Laparoscopic surgery. , and consolidation of industry segments." The CIA study also found that equity firms believe that their increasing participation in the chemical industry will "drive a more entrepreneurial en·tre·pre·neur n. A person who organizes, operates, and assumes the risk for a business venture. [French, from Old French, from entreprendre, to undertake; see enterprise. culture, create sustainable value Sustainable Value Sustainable Value is an approach to measure and manage sustainability performance. The concept was developed by researchers who are working today for Queen's University Belfast for investors, improve cash management, financial discipline and management quality, and impose better corporate governance Corporate Governance The relationship between all the stakeholders in a company. This includes the shareholders, directors, and management of a company, as defined by the corporate charter, bylaws, formal policy, and rule of law. ." Mr. Brown notes that PE firms can also have a positive impact on companies they do not acquire. "The threat of a takeover can bring fiscal discipline to companies as well," he says. Five value creation strategies were identified in the CIA report: organic growth, market consolidation, buy and build, focus and simplify, and operating cost leadership. PE firms generally hold on to an acquisition for one to three years and then sell it for a profit, according to Mr. Muhleman. "In this short time frame, the majority of value is created through improving cost structure. There isn't enough time to invest and deliver on new product development and introduction," he states. PE firms generally exit the business by selling off to strategic buyers. Stock market conditions have not been favorable fa·vor·a·ble adj. 1. Advantageous; helpful: favorable winds. 2. Encouraging; propitious: a favorable diagnosis. 3. for initial public offerings. Secondary buyouts, according to the CIA report, are increasing though, as financial pressures on trade buyers have increased. Some large acquisitions must be broken apart and sold off in pieces in order to meet debt repayment schedules and ensure that the remaining businesses continue to improve in value. "Economic conditions, the financial health of trade buyers, stock market sentiment Market Sentiment The feeling or tone of a market (i.e. crowd psychology). It is shown by the activity and price movement of the securities. Notes: For example, rising prices would indicate a bullish market sentiment. , and the quality of businesses for sale all influence the mix of options available to PE houses at any given time," according to the report. It is also important to note that not all M & A activity results in industry consolidation. "M & A is not equivalent to consolidation," stresses Mr. Muhleman. "When evaluating the level of consolidation in a market sector, the type of transactions must be carefully considered," he adds. Sometimes companies swap business units, which does not reduce the number of players in the market. Private equity firms sometimes acquire subsidiaries, turn them around, and then sell them off to a strategic buyer, which also does not result in consolidation. Additionally, if a PE firm breaks a company into smaller business units, the opposite of consolidation occurs--with the number of players actually increasing. The ultimate question, of course, is what impact the recent M & A activity in the chemical industry--both upstream and downstream--will have on the coatings sector. "The coatings industry is the number one consumer of specialty chemicals," says Mr. Brown. "Consolidation in the specialty chemicals industry will therefore have significant impact on the coatings sector over the next several years." Raw material suppliers may gain pricing leverage, which will place additional cost pressures on more downstream players in the coatings market such as resin resin, any of a class of amorphous solids or semisolids. Resins are found in nature and are chiefly of vegetable origin. They are typically light yellow to dark brown in color; tasteless; odorless or faintly aromatic; translucent or transparent; brittle, fracturing , pigment pigment, substance that imparts color to other materials. In paint, the pigment is a powdered substance which, when mixed in the liquid vehicle, imparts color to a painted surface. , and additive additive In foods, any of various chemical substances added to produce desirable effects. Additives include such substances as artificial or natural colourings and flavourings; stabilizers, emulsifiers, and thickeners; preservatives and humectants (moisture-retainers); and manufacturers, as well as paint formulators themselves. There has been a significant level of upstream activity, with a few prominent private equity firms making major investments in the chemicals industry. Blackstone's purchase of Celanese; Apollo Management's acquisitions of Shell's resins resins, n.pl complex, insoluble, sticky substances secreted by plants. Used as astringents, antimicrobials, and antiinflammatories, and are burned as incense. Can cause oral ulcers and epidermal irritations. business, some of the Eastman CASPI (resins) business, and most recently Borden Chemicals; and KKR's Rockwood Specialties purchase of many of the Dynamit Nobel operations and Johnson Matthey's pigments business are just a few. Apollo Management Apollo Management L.P. is a private equity L.P. firm, founded in 1990 by Leon Black (Apollo Advisors). Based in New York, it also has offices in Los Angeles and London. It has invested over $16 billion in companies inside and outside the of the United States. significantly increased its position in resins for coatings when it acquired Eastman's acrylate Noun 1. acrylate - a salt or ester of propenoic acid propenoate salt - a compound formed by replacing hydrogen in an acid by a metal (or a radical that acts like a metal) ester monomers, composites (unsaturated unsaturated /un·sat·u·rat·ed/ (un-sach´ur-at?ed) 1. not holding all of a solute which can be held in solution by the solvent. 2. denoting compounds in which two or more atoms are united by double or triple bonds. polyester resins Polyester Resin - Unsaturated Polyester Resin. The term generally used for unsaturated (means containing chemical double bonds) resins formed by the reaction of dibasic organic acids and polyhydric alcohols, basic component of SMC/BMC. ), inks and graphic arts graphic arts: see aquatint; drawing; drypoint; engraving; etching; illustration; linoleum block printing; lithography; mezzotint; niello; pastel; poster; silk-screen printing; silhouette; silverpoint; sketch; stencil; woodcut and wood engraving. raw materials, liquid resins, powder resins, and textile chemicals businesses. Observers are waiting to see whether or not Apollo will combine this new company with its Resolution Performance Products business (previously the resins business of Shell Chemicals). According to Michael Gregus, director of The ChemQuest Group, a combined entity would have annual sales of about $1.6 billion and be well positioned in most resin technologies. "The question would then be whether or not any strategic buyer would be in a position to afford such a large acquisition," notes Mr. Brown. Some recent strategic maneuvering by companies has also been important to the paint and coatings industry. "Several dynamics are at work in the coatings industry, many of which are leading to the recent flurry Flurry A drastic volume increase in a specific security. of merger and acquisition activity," says Jim Stephanadis, global business director, Resins & Polymers, Noveon Performance Coatings. "For example, producers of paints and coatings are consolidating to capture market share, access complementary or new technology, improve channels-to-market, and grow in new geographic regions." One result is that companies are becoming larger and more globally focused, enabling them to demand more of their suppliers to hold costs steady or even reduce them. Mr. Stephanadis adds that, at the same time, companies are also rationalizing technical staff and are demanding more services from their suppliers. "As a result of both these trends, suppliers to the coatings industry have reduced capital available to reinvest re·in·vest tr.v. re·in·vest·ed, re·in·vest·ing, re·in·vests To invest (capital or earnings) again, especially to invest (income from securities or funds) in additional shares. in their businesses. Thus, they often have to make difficult choices and establish priorities in terms of resource allocation resource allocation Managed care The constellation of activities and decisions which form the basis for prioritizing health care needs , technology leveraging, new product developments, and/or investing in new capacity or even performing needed maintenance." Lubrizol has also been a key strategic buyer in the resins and additives segments. The company expanded its fledging coating additives business with its 1993 acquisition of George M. Langer & Co. establishing a European base of operations Noun 1. base of operations - installation from which a military force initiates operations; "the attack wiped out our forward bases" base air base, air station - a base for military aircraft army base - a large base of operations for an army for technologies for paint, coatings, and inks. In 1998, three acquisitions followed: the Latin American coating additives business of BetzDearborn Brasil Ltda.; Carroll Car·roll , James 1854-1907. British-born American physician noted for his research on yellow fever. In 1900 he deliberately infected himself with the disease for experimental purposes. Scientific, Inc.; and selected assets of Sumitomo Polymers North America North America, third largest continent (1990 est. pop. 365,000,000), c.9,400,000 sq mi (24,346,000 sq km), the northern of the two continents of the Western Hemisphere. in Pennsylvania Pennsylvania (pĕnsəlvā`nyə), one of the Middle Atlantic states of the United States. It is bordered by New Jersey, across the Delaware River (E), Delaware (SE), Maryland (S), West Virginia (SW), Ohio (W), and Lake Erie and New York . Within the last two years it has significantly expanded its position with the acquisitions of Dock Resins, Avecia's coatings and inks additives hyperdispersant business, and Noveon Inc. "When Lubrizol management decided it wanted to diversify diversify To acquire a variety of assets that do not tend to change in value at the same time. To diversify a securities portfolio is to purchase different types of securities in different companies in unrelated industries. the company, they started investigating how to transfer existing technology into different industries and end-use markets. The company realized, however, that they could not rely on organic growth alone; they needed to partially acquire their way to success," says Mr. Stephanadis. He adds that the companies or portions of business that Lubrizol has purchased over the better part of 10 years have allowed it to expand geographically, add new product platforms to its portfolio, build on its technical expertise, and build its core competencies A core competency is something that a firm can do well and that meets the following three conditions specified by Hamel and Prahalad (1990):
Consolidation of upstream paint and coatings players is expected to make the industry more profitable and, in general, healthier. Whether or not recent M & A activity has resulted in increasing pricing power Pricing Power An economic term referring to the effect that a change in a firm's product price has on the quantity demanded of that product. Pricing power ties in with the "Price Elasticity of Demand. for coatings players is hard to tell. "The energy issues facing all of the chemical industry have overshadowed any impact that recent mergers and acquisitions might be having at this point in time," explains Mr. Brown. "I do believe, though, that in the long term we will see some positive impact on pricing power," he continues. The two largest transactions for coatings formulators in the last couple of years are Bain Capital's acquisition of SigmaKalon from TotalFinaElf and Berkshire Berkshire (bärk`shĭr, –shər, bûrk`–) or Berks (bärks, bûrks), former county, S central England. Hathaway's purchase of Benjamin Moore This article is about the American bishop. For the British biochemist, see Benjamin Moore (biochemist). Benjamin Moore (1748 – 1816) was the second bishop of the Episcopal Diocese of New York. . The Berkshire Hathaway Berkshire Hathaway (NYSE: BRKA, NYSE: BRKB) is a conglomerate holding company headquartered in Omaha, Nebraska, U.S., that oversees and manages a number of subsidiary companies. acquisition is an exception to the general behavior of private investment groups. "Benjamin Moore is one of the top coatings businesses in the world in terms of management and profitability," says Mr. Brown. "The value in Benjamin Moore is not the technology, but the excellent brand name and extremely loyal distribution channel," he continues. "Warren Buffett Warren Buffett Known as "the Oracle of Omaha," Buffett is Chairman of Berkshire Hathaway and arguably the greatest investor of all time. His wealth fluctuates with the performance of the market, but for the last few years he has been reported to be worth over $30 billion, making is known for finding value where others don't, and this acquisition is a perfect example." Most M & A activity within the coatings industry has been on a much smaller scale, with national players acquiring smaller regionals. The latest announcements concern the acquisition of two U.S. regional players: Professional Paint (PPI (1) (Pixels Per Inch) The measurement of the resolution of a monitor or scanner. For example, a monitor that is 16 inches wide and displays 1600 pixels across its width would have a resolution of 100 ppi (1600 divided by 16). ) by Mexican Mexican named after or originating in Mexico. Mexican axolotl see ambystomamexicanum. Mexican beaded lizard (Heloderma horridum national Comex and Duron by Sherwin-Williams. "We can only speculate about the intentions of Comex, but it makes sense that they are looking to enter the U.S. market at a low cost position," says Mr. Brown. "It is also curious to consider why Sherwin-Williams didn't snap up PPI, since the company has indicated that it remains interested in further regional acquisitions," he adds. Without having any details on how the deal took place, it is difficult to say whether or not Sherwin Williams had any opportunity to be a player. In any event, with the backing of Comex, PPI will be a formidable competitor for Sherwin-Williams in the Western and Intermountain in·ter·moun·tain adj. Located between mountains or mountain systems, especially lying between the Rocky Mountains and the Sierra Nevada or Cascade Range in the western United States. regions of the U.S. The Duron acquisition increases Sherwin-Williams' market share to 38% and gives the company close to 3000 stores, which is nearly double that of competitor Home Depot The Home Depot (NYSE: HD) is an American retailer of home improvement and construction products and services. Headquartered in Vinings, just outside Atlanta in unincorporated Cobb County, Georgia, Home Depot employs more than 355,000 people and operates 2,164 big-box . It also enhances the company's position in the contractor market in the eastern U.S. Sherwin-Williams also recently completed its acquisition of Paint Sundry sun·dry adj. Various; miscellaneous: a purse containing keys, wallet, and sundry items. [Middle English sundri, from Old English syndrig, separate. Brands of Philadelphia. One area that has not experienced any noticeable consolidation but that needs to see significant restructuring restructuring - The transformation from one representation form to another at the same relative abstraction level, while preserving the subject system's external behaviour (functionality and semantics). is the powder coatings Powder coating is a type of dry coating, which is applied as a free-flowing, dry powder. The main difference between a conventional liquid paint and a powder coating is that the powder coating does not require a solvent to keep the binder and filler parts in a liquid suspension market. "Overcapacity o·ver·ca·pac·i·ty n. Too great a capacity for production of commodities or delivery of services in relation to actual need: the problem of overcapacity in many large industries. has been an issue for this sector for some time, and we would expect to see a lot of consolidation," says Mr. Brown. However, the players in this market are not seen as being profitable enough to be attractive as takeover targets Takeover target A company that is the object of a takeover attempt, friendly or hostile. takeover target See target company. . "Most likely a private equity firm will identify a potential for improving value and take the lead in starting acquisition activity," adds Mr. Muhleman. "In this particular sector, there are a number of family-owned businesses that do not appear profitable enough to warrant maintaining them, but they do provide enough income to support the livelihoods of their owners. It will take some time for these businesses to either fold or be acquired by larger players," he also notes. As we move closer to 2005, the level of M & A activity remains relatively high. Will it continue through next year? "The chemical industry tends to be the leading indicator Leading Indicator A measurable economic factor that changes before the economy starts to follow a particular pattern or trend. Leading indicators are used to predict changes in the economy, but are not always accurate. for economic expansion in general," says Mr. Brown. "It tends to come up before the rest of economy, and some analysts believe we are near the peak of this cycle," he continues. "Therefore we may expect to see a decline in acquisition activity by private equity firms and an increase on the selling side, as long as strategic buyers remain financially capable of bolstering their positions through purchase of these businesses."
2003-2004 Mergers & Acquisitions Activity
Year Acquirer Country
Commodities
Jan 2004 Koch Industries USA
Apr 2004 Blackstone (private equity) USA
2004 Chemial (owned by private equity 3i) UK
Specialties
Jan 2003 UCB NET
Jul 2003 Huntsman USA
Aug 2003 Halox (div. of Hammond Group) USA
Nov 2003 Texas Pacific Group USA
Dec 2003 Sherwin-Williams USA
Jan 2004 Lubrizol USA
Feb 2004 JM Huber USA
Mar 2004 International Specialty Products USA
Mar 2004 Arch Chemicals USA
Apr 2004 Azelis LUX
Apr 2004 Elementis UK
Apr 2004 Kohlberg, Kravis, Roberts USA
Apr 2004 Lubrizol USA
Jul 2004 Apollo Management USA
Jul 2004 Apollo Management USA
Jul 2004 DSM Coating Resins NET
Aug 2004 Rockwood Pigments (KKR) USA
Formulators
Jan 2003 Chemcraft International CAN
Jan 2003 ICI Paints' North American Division USA
Feb 2003 Bain Capital USA
Mar 2003 Magni Group USA
Mar 2003 Spencer Coatings UK
Apr 2003 Akzo Nobel NET
Apr 2003 General Paint CAN
Apr 2003 RPM USA
May 2003 Altana GER
May 2003 Lafarge Peintures (Materis group) FRA
Jun 2003 Sto AG GER
Sep 2003 Akzo Nobel NET
Sep 2003 Hillebrand Coating Technologies GER
Sep 2003 ITW-Devcon USA
Aug 2003 Riverside Investment Fund USA
Jan 2004 Chemcraft International USA
Jan 2004 Professional Paint (PPI) USA
Jan 2004 Valspar USA
Mar 2004 H.B. Fuller USA
Mar 2004 Sika SWI
Apr 2004 CWS Powder Coatings GER
Apr 2004 Fenzi Group ITA
Apr 2004 Lafarge Pintures FRA
May 2004 Sherwin-Williams USA
Jun 2004 Cloverdale CAN
Jun 2004 FLH group SWI
Jul 2004 Akzo Nobel NET
Aug 2004 Comex MEX
Aug 2004 Valspar USA
Aug 2004 Salchi ITA
Year Acquiree Country Value
Commodities
Jan 2004 Dupont's Invista textiles and
intermediates USA $4.4 BN
Apr 2004 Celanese GER $3.7 BN
2004 AP Chemicals from Clariant UK
Specialties
Jan 2003 Air Products' graphic arts
business USA
Jul 2003 Vantico/Matlin-Patterson Global
Aug 2003 Irgacor organic corrosion
inhibitor business from Ciba SWI
Nov 2003 Kraton Polymers from Ripplewood Global
Dec 2003 Accurate Dispersions from Eastman USA
Jan 2004 Avecia's additives business UK
Feb 2004 CP Kelco ApS from Hercules USA
Mar 2004 Biochema Schwaben GER
Mar 2004 Avecia's biocides business UK $215 MM
Apr 2004 Sibeco BEL
Apr 2004 Sasol Servo NET [euro]48.5 MM
Apr 2004 Dynamit Nobel GER [euro]2.5 BN
Apr 2004 Noveon USA $1.84 BN
Jul 2004 Eastman's CASPI unit USA $215 MM
Jul 2004 Borden Chemical from KKR USA $1.2 BN
Jul 2004 Huttenes-Albertus Lackrohsoffe
coatings-resins busin GER
Aug 2004 Johnson Matthey's pigments and
dispersions business USA $50 MM
Formulators
Jan 2003 Antoni Coatings CAN
Jan 2003 Hancock architectural paint stores USA
Feb 2003 SigmaKalon from TotalFinaElf FRA $1 BN
Mar 2003 Lackfabrik Dr Schmid Nachf GmbH GER
Mar 2003 Pearl Paints UK
Apr 2003 Omni AB's bus painting facilities
in Sweden SWE
Apr 2003 Ideal Paints CAN
Apr 2003 Koch Waterproofing Solutions USA
May 2003 Schenectady's global electro-
insulation business USA
May 2003 Alp Pinturas SPA
Jun 2003 Siocof AG FRA
Sep 2003 Techni-Coat International NV BEL
Sep 2003 Tirbo Tech AG SWI
Sep 2003 Futura Coatings USA
Aug 2003 HOB Prima of Brasy CZE
Jan 2004 Paramount Paint & Lacquer from
Surface Protection Industries USA
Jan 2004 Classic Paint USA
Jan 2004 De Beer Lakfabrieken BV NET
Mar 2004 Probos SA's adhesives and resins
business POR
Mar 2004 Akzo Nobel's polyurethane
adhesives NET
Apr 2004 Dorken's powder coating business GER
Apr 2004 Akzo Nobel's mirror coatings BEL
Apr 2004 R M Distribution FRA
May 2004 Duron USA $253 MM
Jun 2004 Rodda Paint USA
Jun 2004 Franken Coatings GER
Jul 2004 Altana Group's coil coatings
business (Rhenacoat) FRA
Aug 2004 Professional Paint (PPI) USA
Aug 2004 Associated Chemists (forestry
products line and assests) USA
Aug 2004 Altana Group's coil coatings j.v.
business ITA [euro]27 MM
(Salchi Rhenacoat)
Year Sales
Commodities
Jan 2004 Includes sizeable coatings
supplies business: amines for
polyamide powder coatings;
waterborne PU systems and epoxy
coatings; anti-fouling additives
for marine coatings; curing
agents and other additives.
Apr 2004
2004 [pounds sterling]15 MM Clariant's esters business.
Specialties
Jan 2003 $17 MM Liquid resins, including
waterborne emulsion and solid
acrylics for graphic arts.
Includes production facility in
Langley, South Carolina with 35
employees.
Jul 2003 Restructure that gives Hunstman
full operational control of the
business. Renamed Huntsman
Advanced Materials.
Aug 2003 Includes coating patents,
manufacturing technology, and
R & D.
Nov 2003 $770 MM Private equity exit from Kraton
which was bought from Shell 2001.
Dec 2003 $45 MM Colorants product lines and
equipment. Includes 140
employees.
Jan 2004 $50 MM Includes pigment dispersants such
as Solsperse, Solplus and Solthix
for coatings and inks.
Feb 2004 Leading producer of xanthan gum,
pectin, and carrageenan. Rheology
modifiers.
Mar 2004 Biocides.
Mar 2004
Apr 2004 [euro]28 MM Distribution of additives, flame
retardants, and general
chemicals.
Apr 2004 [euro]108 MM Additives for coatings and
specialty surfactants, and paper
chemicals.
Apr 2004 $1.6 BN Includes Chemetall and Sachtleben
to be combined with KKR's
Rockwood pigments.
Apr 2004 $1.2 BN
Jul 2004 $600 MM CASPI (coatings, adhesives,
specialty polymers, and inks).
Majority of these businesses were
acquired during Eastman's $500
million purchase of Lawter
International in 1999, and its
$355 million acquisition of
McWhorter in 2000.
Jul 2004 $1.4 BN
Jul 2004 [euro]15 MM Resins.
Aug 2004
Formulators
Jan 2003 Wood coatings.
Jan 2003 Paint stores in Boston area, from
Sico subsidiary Hancock.
Feb 2003 [euro]1.7BN Does not include the U.S.
business (Sigma Coatings) which
is involved in litigation with a
customer (sales of [euro]35MM).
Mar 2003 Schmid paint company employs 20
people and concentrates on
industrial paints and exports.
Products widely used in auto
industry.
Mar 2003
Apr 2003
Apr 2003 General Paint is a subsidiary of
Professional Paints of the U.S.
General had 69 locations in
western Canada. Ideal is an
architectural paint firm in
Ontario.
Apr 2003 $30 MM Operate as a stand-alone business
under RPM's Tremco unit. Provider
of waterproofing solutions to new
residential construction market.
May 2003 $90 MM Wire coatings and insulation of
wires and impregnation resins for
the insulation of wires and
impregnation resins.
May 2003 [euro]23 MM Spanish decorative paint maker.
Jun 2003 [euro]15 MM Facade paints and elastic
coatings.
Sep 2003 [euro]10 MM Plastic coatings for consumer
electronics, cosmetic packaging,
sports and leisure goods.
Sep 2003 Low-friction coatings for dry
film lubrication, corrosion
protection. Also functional
coatings with noise reduction and
heat conduction properties into
auto and machine industries.
Sep 2003 Polyurethane and polyurea
coatings, elastomers and
structural resins and other
specialty coatings.
Aug 2003 35,000 tons of decorative paint
capacity.
Jan 2004 Wood finish paints and lacquers
based in Los Angeles serving
southern California and Mexico.
Jan 2004 Non-mfg assets and four retail
stores: Professional Paint owns a
number of regional paint
companies; Hanly Paint, Parker
Paint, Kwal Paint, Sophie Morris
Paint, Stellar Kwal Paint
(formally Jones-Blair), Duckback
Products, General Paint, Ideal
Paint.
Jan 2004 [euro]39 MM Manufacturer and distributor of
automotive refinish coatings.
Mar 2004 $30 MM Water-based, hot-melt, reactive
adhesives for assembly,
woodworking, footwear and
converting. Emulsions for
coatings as well.
Mar 2004 [euro]17 MM Leading position in the sandwich
panel bonding systems for truck
trailors, building facades, and
wind turbine blades.
Apr 2004
Apr 2004 [euro]7 MM Akzo is looking to divest other
general industrial coatings.
Apr 2004 $18 MM French decorative paint company.
Larfarge Pintures is part of
building materials group Materis.
May 2004 $350 MM Regional paint firm with 253
company stores.
Jun 2004 Merger of two western regional
paint companies.
Jun 2004 Industial Paint.
Jul 2004 [euro]11.6 MM Includes coil coatings facility
at Montataire.
Aug 2004 Western U.S. regional paint
company.
Aug 2004 Sealants, surface primers, paints
$28 MM and stains, inks, and specialty
chemicals for makers of oriented
strand board and other wood
products.
Aug 2004 Selling the 51% stake in joint
venture to its partner.
Data supplied by ChemQuest.
by Cynthia Challener JCT JCT Junction JCT Jerusalem College of Technology JCT Joint Contracts Tribunal (UK build contracts governing body) JCT Journal of Coatings Technology JCT John Christner Trucking JCT Journal of Curriculum Theorizing COATINGSTECH, Contributing Writer |
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