Waterland and Nowocoat enter partnership to accelerate growth
Waterland Private Equity investerer i Nowocoat, der producerer funktionelle coating-produkter og -løsninger med en stærk bæredygtighedsprofil til professionelle tagmalerfirmaer, industrielle kunder samt byggemarkeder.
På Nowocoats moderne fabrikker i Kolding og Falun udvikler og producerer ca. 60 erfarne medarbejdere skræddersyede coating-løsninger i tæt samarbejde med kunderne. Omkring 80% af omsætningen stammer fra salg af bæredygtige og vandbaserede produkter, der udover at forlænge de behandlede materialers levetid også er langt mere arbejdsmiljøvenlige at håndtere i selve produktionsprocessen. De innovative produkter nedbringer f.eks. udledningen af CO2 ved at reducere energiforbruget i processen i forbindelse med tagmaling, behandling af trægulve og -møbler samt ved overfladebehandling af industrielle komponenter.
Efter at have skabt organisk vækst i niveauet 18% i perioden 2018-2020 løftede Nowocoat omsætningen til ca. 200 mio. kr. i 2021. Udviklingen viser en generel fremgang i forretningen, hvor produkterne afsættes til professionelle, industrikunder og detailforhandlere. Dette blev yderligere styrket i 2021 med købet af svenske AB Rötmotaverken med produktion i Falun, ligesom overtagelse af en væsentlig kontrakt på gør-det-selv-produkter til detailhandelen har bidraget positivt. I 2019 udvidede Nowocoat ligeledes forretningen ved at købe og integrere danske Lurrell Industries A/S, der leverer produkter til industriel overfladebehandling af træmøbler.
”Vi har skabt en stærk og lønsom forretning ved at trække på vores mangeårige erfaring og unikke tekniske kompetencer, når vi sætter nye standarder i industrien ved at udvikle bæredygtige kvalitetsløsninger og -produkter i et tæt samarbejde med kunderne. I Nowocoat har vi altid været passionerede nørder med farve og lak i blodet og et skarpt fokus på innovation og bæredygtighed. Vi er glade for at byde velkommen til Waterland, der deler vores syn på de store muligheder i markedet og vil bidrage med værdifulde kompetencer og kapital til vores videre udvikling,” siger Ole E. Jensen, administrerende direktør i Nowocoat.
I den kommende periode vil Nowocoat udbygge den stærke markedsposition i Norden og udvide den internationale forretning. Den fortsatte fremgang skal skabes med afsæt i den velinvesterede produktionsplatform og ved at udbrede virksomhedens tagmalerløsninger til tilstødende markeder i Europa, styrke salget til eksisterende og nye industrielle kunder i Asien – hvor COVID-19 har dæmpet aktiviteten midlertidigt – samt løfte afsætningen i byggemarkeder og detailforhandlere på tværs af markeder.
”Vi ser frem til at indgå et tæt partnerskab med ledelse og medarbejdere i Nowocoat, der er en veldrevet og velinvesteret virksomhed med stort vækst- og udviklingspotentiale i et marked i rivende udvikling. Sammen vil vi sætte yderligere fart på udbredelsen af Nowocoats bæredygtige løsninger, der er i høj kurs hos kunderne, fordi de er miljøvenlige og forlænger levetiden på byggematerialer. Vi ser gode muligheder for at accelerere væksten ved at fortsætte den positive udvikling af Nowocoat og udvide forretningen gennem målrettede opkøb,” siger Kaspar Kristiansen, Managing Director for Norden i Waterland Private Equity.
Den daglige ledelse i Nowocoat fortsætter uændret og vil investere i virksomheden sammen med de nuværende ejere og Waterland, der indtræder som majoritetsaktionær med en ejerandel på 85%. Parterne har aftalt ikke at oplyse købsprisen.
For yderligere oplysninger, kontakt venligst:
Nowocoat - Ole E. Jensen, administrerende direktør
Tlf. +45 30 30 32 34
Waterland - Kaspar Kristiansen, Managing Director
Tlf. +45 21 28 22 44
Nowocoat leverer innovative, bæredygtige og funktionelle high-performance coating-produkter og -løsninger til professionelle og industrielle kunder samt byggemarkeder og øvrige detailforhandlere. Virksomheden har 60 medarbejdere og blev etableret i 2014 med rødder tilbage til 1861. Coating-produkterne til tagbehandling, metaloverflader samt trægulve og -møbler fremstilles på Nowocoats produktionsfaciliteter i Kolding og Falun, Sverige. Nowocoat er certificeret i miljøledelse ISO 14001 og har som den første og eneste danske coating-producent opnået DNV’s SDG Verdensmålscertificering, og omkring 80% af virksomhedens omsætning stammer fra salg af bæredygtige og vandbaserede produkter.
Waterland er en uafhængig kapitalfond, der støtter iværksættere i realiseringen af deres vækstambitioner. Med betydelige finansielle ressourcer fra virksomhedens ottende fond på 19 mia. kr. og specialiseret industriekspertise gør Waterland det muligt for porteføljeselskaberne at accelerere væksten organisk og gennem opkøb. Til dato har Waterland gennemført investeringer i over 700 virksomheder. Waterland opnår konsekvent topplaceringer i målinger af investeringsresultater blandt kapitalfonde og er den eneste fond, der konstant har været i top-5 i HEC/Dow Jones Private Equity Performance Ranking de seneste 10 år. Waterland administrerer investeringstilsagn for 67 mia. kr. og har kontorer i Danmark, Holland, Belgien, Tyskland, Schweiz, Polen, Frankrig, Irland og Storbritannien.
Environmental management can ensure an active response to the climate and improve your business strategy
Climate change and environmental initiatives are more closely linked than ever. Environmental management standard such as ISO 14001 can be a key factor in companies reducing their environmental footprints and increasing their contributions to meeting the targets agreed upon at COP26.
Nowocoat is based on Stålvej 3 in Kolding
Nowocoat is a family-owned business that can trace its roots back to 1861 which makes paints and varnishes for craftsmen, industrial production and the construction sector both in Denmark and abroad, and the products are made under the ISO 14001 environmental management standard and the certification that has been gained.
“We have worked with environmental management since the end of the 1980s, so it is anatural part of our management system. We are an international company, and ISO 14001 makes sense no matter what language or culture we are dealing with. When you can show your ISO 14001 credentials, you are respected, whether you are dealing with China or Sweden,” says CEO Ole Enevold Jensen.
The standards for environmental management provide a number of specific instructions for mapping how the company’s products and production processes impact the environment. The standard also deals with a large number of other issues such as waste management, the use of harmful substances, electricity consumption and transport.
“The environmental management standards are a tool that can be used to lead your company or organisation in the right direction when it comes to environmental issues. The company gets different tools to make a number of decisions on an informed basis, meaning one can work with reducing the environmental impact in a more targeted manner. By following the standard, you ensure that you reach your targets,” says Kasper Hillgaard Mühlbach, Chief Consultant at Dansk Standard.
Up to date with legislation
Nowocoat achieved the ISO 14001 certification in 2015, and it took more than a year to get the new routines, process and workflows integrated, but it has been worth the effort.
Environmental management ensures that we are acting in an environmentally responsible manner in relation to our local communities, customers, employees and suppliers. At the same time, the standard ensures that we will grow in a responsible manner in the long run.
Ole Enevold Jensen, CEO, Nowocoat
The certification also provides Nowocoat with a benchmark in relation to legislation and environmental trends.
“ISO 14001 is a very dynamic tool, since legislation is constantly changing. Legislation can be quite complicated, since it deals with both employees, products, production and the local community,” the CEO says.
Kasper Hillgaard Mühlbach from Dansk Standard echoes this sentiment.
“We are seeing the complexity of environmental legislation increasing, and it is becoming harder and harder for companies to stay up to date with the latest legislation. Here too the standard is a good tool for implementing processes that make this task easier,” he says.
Customers are demanding environmental management
At Nowocoat, environmental management is divided into four areas: The factory, including the employees, safety, energy and water consumption, products that are to be part of products manufactured by another producer, products that have a function, such as roof paint that absorbs less sunlight and, finally, advisory services to other companies.
“We no longer have to look things up in the manual, because what we do is according to the standard, but we are always considering whether we need to adjust our processes and workflows,” says Ole Enevold Jensen.
In his experience, Nowocoat’s customers expect the company to have an environmental management certification or some other measurable tool.
“We have acquired five companies in recent years, and the prerequisite for our acquisition was that they had to have an environmental certification,” he emphasises.
According to Kasper Hillgaard Mühlbach, the standard is important when a company wants to introduce a culture that cares about the environment.
"It serves as a stamp of approval for companies’ environmental work, and there is a branding value from being certified, as it shows the world that you are working in a targeted manner to reduce your environmental impact and that the data is valid."
Kasper Hillgaard Mühlbach, cheif consultant at Dansk Standard
Ole Enevold Jensen is also certain that the environmental management can be seen on Nowocoat’s bottom line.
“I like that we need to register everything such as events that could lead up to an accident. It forces employees to think things through, and we can then ensure that it is followed up on. When you do that, I am sure that environmental management pays off, since we avoid making the same mistakes over and over again,” he says.
The work with environmental management has meant that the company has had no wastewater emissions requiring the involvement of the authorities.
More competitive advantages
Kasper Hillgaard Mühlbach recommends that companies who want to introduce environmental management not only map which financial gains can be achieved but also look at what expectations customers and business partners have and will start to have in the next five years.
“Companies need to look at what they can do to become more attractive to their customers, business partners and future employees, and here the environment plays an important role. If you develop green products, this provides more market-related competitive advantages and it becomes easier to attract future talent to your company, since you have firm proof that you care about the environment,” Kasper Hillgaard Mühlbach points out.
“A lot of people are talking about the green transition, and with an ISO 14001 certification, you get a tool that you can actually use to implement your strategy in this area. It is a systematic method that allows the company to constantly mature its managerial approach.”
With an environmental management standard, companies and organisations get a good and effective tool that can both reduce the most significant environmental impacts and make the environmental initiatives more credible. The standard also provides a financial payoff and can be used to document your environmental initiatives to the outside world.
Besides ISO 14001, which is the standard that defines the requirements for environmental management and can form the basis for a certification, Dansk Standard also works with other standards that can help companies with the implementation and improvement of things such as ISO 14004, which is a guide for how to implement environmental management in a company.
The companies can decide for themselves whether they just want to comply with the requirements of ISO 14001 or if they want to get certified under this standard.
Global environmental breakthrough for Danish paint and coating manufacturer
Nowocoat is the first Danish paint and coating manufacturer to have obtained international certification from DNV on the 17 UN Sustainable Development Goals
“DNV’s SDG certification shows that Nowocoat has elected to not simply commit itself to the SDGs they are focused on, but that they are proactively setting objectives for what they want to achieve with plans that are integrated into their business and which they can provide us documentation on. Nowocoat has thereby joined an exclusive club of Danish companies that don’t just say they are working on the goals, but can also prove that they are reaching their sustainability objectives,” said sales manager Kåre Appel Weng at DNV. “DNV’s SDG certification is harmonised with ISO’s High Level Structure. This means that Nowocoat has integrated its work on the UN SDGs into their existing management system, which DNV has certified for more than 15 years. This makes it much simpler in practice to work on the goals and incorporate them into daily routines and processes,” he added.
Sustainable development is an important aspect in all development at Nowocoat Industrial A/S and an integral component of the company’s management system. Nowocoat works systematically with the environment and quality management, and the company has already obtained ISO 9001 and 14001 certification.
“As an integral part of this work, we are also working on the 17 UN Sustainable Development Goals, commonly referred to as the SDGs. We are especially focused on the goals dealing with health and well-being, decent jobs and economic growth and responsible consumption and production. Yet the whole attitude on ensuring decent conditions from start to finish for people, products, health and the environment is also important to us. That is why it is natural for us to work on the three SDGs we have chosen to focus on, and I am incredibly proud and thrilled about the fact that we have now obtained certification. I am also convinced that this new recognition will contribute effectively to ensuring growth and sustainable solutions here at Nowocoat for the benefit of people and the environment,” said Ole Enevold Jensen, CEO of Nowocoat.
Sustainable and environmentally friendly products
Among other things, Nowocoat has demonstrated its ambitions in relation to the SDGs through specific environmental and quality objectives. In 2021, for example, these objectives include a unique and approved algae control agent that will replace products that are currently available on the market but which according to Nowocoat are illegal to use. “Our goal is for the product to be found in 80 percent of all of Denmark’s 500 DIY stores and garden centres in 2021. The consumption of illegal agents runs up to 40 million litres per year. Our approved algae control agent is expected to convert at least five percent of the market, corresponding to an expected sales volume of no less than 2 million litres in 2021,” Enevold predicted. He also highlighted the company’s so-called roof paint, which is certified under DGNB as a special sustainability label. “The product UV Lak is also ready to enter the market. The product is intended to replace solvent-containing coatings and reduce environmentally harmful emissions while also creating a better working environment.”
Earlier this year, Nowocoat acquired the Swedish paint company Rötmotaverken as part of its strategy to manufacture sustainable products. Additionally, Nowocoat has established a new global system that collects and manages all assignments worldwide, and this system is envisaged to ensure better management of resources and flow in the completion of assignments, creating a better working environment and higher well-being for the company’s employees.
Sustainable development and secure jobs
Jensen emphasised that development and innovation are what drive processes forward at Nowocoat. Responsible consumption and production are the driving force. “We work systematically with an environmentally sound handling of chemistry, products and waste in our production processes. That is why we are going for sustainable labels such as Ecolabel and DGNB and developing a UC coating that results in a massive reduction of emissions of volatile organic solvents. This process going hand-in-hand with ensuring decent, secure jobs, health and well-being and less exposure to hazardous chemicals. We spend a lot of resources on engaging, managing and supporting our employee in relation to sustainable development. Our Code of Conduct has been sent out to all our suppliers, and we ensure through dialogue that everyone is working with this set of ethical rules,” said Jensen.
About Nowocoat Industrial
- Nowocoat Industrial A/S is an innovative paint and coating manufacturer with a portfolio of functional and durable coatings for mineral, wood and metal surfaces for industrial application.
- The company has 36 employees, its head office is located in Kolding, and it has employees in Poland, China and Vietnam.
- In 2019, Nowocoat Industrial acquired the company Lurrell Industries.
- 80 percent of Nowocoat’s production is exported to markets in Northern Europe and Asia.
- Expected revenue for 2021: DKK 220 million.
- Expected result for 2021: +DKK 40 million before tax
- Supplier to customers such as IKEA, Jysk, Wal-Mart and K-Markt.
- In 2021, Nowocoat acquired the Swedish AB Rötmotaverken, which has been producing and developing special products for the paint industry since the 1920s. The company has a turnover of SEK 70 million and 20 employees.
About DNV and the SDG certification
- The SDG certification was launched in 2019, and since then, 20 Danish companies have obtained certification according to the certification criteria.
- These criteria are harmonised with ISO’s High Level Structure and can therefore be integrated into the companies’ existing management systems.
- Certification requires that the company can provide documentation to DNV that they has committed itself to specific objectives in relation to the UN SDGs, that they have produced specific plans to improve their impact in relation to the UN SDGs and that they can document progress and concrete results.
- DNV conducts at least one annual inspection visit at the company to ensure that the company is continuously working on improvements and continues to comply with the criteria.
- DNV Business Assurance is one of the world’s leading certifying organs with activities in more than 100 countries and five offices in Denmark.
Danish firm Nowocoat is continuing its growth and has increased its turnover by more than 50 percent and DKK 70 million after acquisitions in Sweden
Danish, family-owned paint and lacquer manufacturer Nowo- coat Industrial A/S is continuing its massive growth and has already reached a turnover in excess of DKK 220 million this year. The background for this development is an ag- gressive marketing strategy based on high quality, service, and patented, environmentally friendly and sustainable products. An additional acquisition will be announced shortly.
After intense negotiations over the summer, Swedish paint and varnish factory AB Rötmotaverken is now part of Danish growth company Nowocoat Industrial A/S, which is based in Kolding. Nowocoat is thus cementing its growth strategy and has already reached a turnover of DKK 220 million in 2021, just seven years after the company’s establishment.
“From the beginning, we have focused on growth and earn- ings,” says Ole E. Jensen, CEO of Nowocoat Industrial A/S, announcing another acquisition in 2021, which will increase total revenue to DKK 350 million in 2022. “We have a healthy business with available capacity and finances that give us good business opportunities. We will use this to our advan- tage when the opportunity arises,” Ole E. Jensen states.
Nowocoat Industrial A/S will provide AB Rötmotaverken with more and new resources in the form of know-how, invest- ments and synergies. The company will continue to operate at its current address in Sweden, and AB Rötmotaverken’s CEO, Conny Alfsson, will continue to be responsible for day- to-day operations, sales and development.
“The merger will strengthen both companies. With Nowocoat Industrial, we can accommodate and deliver on more specific enquiries. The market is characterised by few very large actors, and this subjects customers to some limitations – not least in hardware stores and the consumer market. Often, suppliers more or less dictate the conditions under which the collab- oration is to take place, and with the increased capacity and the new products we will have available through our connec- tion to Nowocoat Industrial, in the future we will be able to service hardware stores significantly better and thus provide them with a higher degree of freedom in their purchases,” Conny Alfsson emphasises.
New business opportunities created the interest in taking over the Swedish company. “The acquisition of AB Rötmota- verken is a strategic investment that is about much more than increasing our volume in the market. The company offers products for both the industrial and consumer markets, and their sales channels for hardware stores in the Nordic region and their physical location give us advantages that we do not have in Kolding today. On the other hand, we now have a larger capacity, a wider product range and better facilities as well as innovation and know-how within functional sur- face treatment, which can greatly strengthen the business in Sweden,” Ole E. Jensen points out.
Nowocoat Industrial A/S expects to create further growth in both companies and win market shares following the ac- quisition of AB Rötmotaverken through, among other things, a common focus on sustainability.
“Technologically and scientifically, Nowocoat Industrial has very strong competences which will strengthen our position vis-à-vis consumers,” says Conny Alfsson, and is backed by Ole E. Jensen: “The consumer market is a growing market, and as consumers are becoming more aware of effective, du- rable and environmentally friendly alternatives to the wood protection, algae remover, wall paint or floor varnish they use today, I am sure we will stand strong in this market as well.”
About Nowocoat Industrial
> Nowocoat Industrial A/S is an
innovative paint- and lacquer
factory with a product portfolio
of functional and durable coatings
for mineral, wood and metal surfaces for industrial use.
> The company is headquartered and has its production
in Kolding, with employees in Poland, China and Vietnam.
> In 2019, Nowocoat Industrial A/S took over Lurrell Industries.
> Nowocoat Industrial A/S is environmentally certified according to ISO 9001 and ISO 14001.
> 80 percent of production is exported to markets in Northern Europe and Asia.
> Revenue 2020: DKK 123 million.
> Profits 2020: DKK 26.3 million before tax.
> Number of employees 2021: 36.
> Subcontractor for customers such as IKEA, Jysk, WallMart and K-Markt.
> AB Rötmotaverken has been producing and developing special products for the paint industry since the 1920s. In 2020, the company had a turnover of SEK 70 million, employing 20 people.
Huge market for innovative solutions with Coolingpaint from Nowocoat
Danish political party Venstre’s member of the Euroean Parliament’s environmental group, Linea Søgaard- Lidell, described Coolingpaint as ”incredibly smart” after today’s visit to Danish paint and lacquer manufacturer Nowocoat in Kolding – something of a growth phenomenon in Danish industry.
“It is clear that we will face massive challenges with heating and cooling buildings if we are to achieve our ambitious climate goals. I am sure that ahugemarket awaits thesolution developed by Nowocoat,andI am generally impressed by the level of innovation I experienced at Nowocoat. This bodes well for the future,” says Linea Søgaard-Lidell.
COOLINGPAINT isapatented and innovative paint that reflects 70% of the sun’s infrared rays and reduces the surface absorption of heat by as much as 20% thanks to microscopic mirrors added to the pigments.
Nowocoat invitedLineaSøgaard-Lidellfora visitso that she could experience first-handtheserelevant solutions in the effort to meet the adopted environmental goals.
“Our Coolingpaint could be a good solution for saving money and cutting CO2 emissions from existing buildings. The product has been developed through new lines ofthinkingandinnovation, disciplinesnthat we have mastered, and the creation of sustainable paints has long been part of our DNA. Right now, the times are working in our favour,and we are ready to offer a thoroughly tested range of products for woodwork, facades and roofs,” says Chairman of the Board Nina Reinert of Nowocoat.
Coolingpaintwill benefit private customers and be part of large-scale solutions forindustrial buildings, offices and businesses with air conditioning, and there are many reasons to choose Coolingpaint. First of all, it will result in reduced CO2 emissions from cooling. Coolingpaint ensures that the temperature of the treated surface does not become excessively high, and because it requires more energy to cool a building than to heat it, the product can help reduce the ever-increasing CO2 emissions from cooling.
Secondly, the product provides unique protection. Coolingpaint protects the treated surface from the sun’s damaging infrared rays, and has been quality tested to international standards for consumption per area and covering power, UV stability, adhesion, peeling, blistering, cracking, high weather resistance, fungal and algae growth, gloss and colour change.
The product is labelled with the EU flower, which guarantees that the product meets strict environmental requirements at all stages of its life cycle. This means that Coolingpaint does not contain heavy metals, plasticisers or harmful amounts of solvents.
Finally, it shouldbe emphasised that theproduct is a result of a patented technology. Nowocoat’s US patent is called Solvent-free Infrared Reflective Surface Coating and this covers both the construction and process.
The product from Nowocoat is the culmination of several years of development based on the Stealth technology known from and developed by the US military.