Waterland buys Nowocoat

Rachel Lewis
06 January 2022

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Waterland Private Equity has bought an 85% stake inТ Denmark-based paint manufacturer Nowocoat.

The GP will make targeted acquisitions to build on the investment.

Nowocoat hopes to expand its business in the Nordic region while building its international business by increasing sales of its roof paint into adjacent markets in Europe, strengthening its presence in Asia, and targeting more builders' merchant chains and retailers globally.

In 2021, Nowocoat acquired Swedish varnish and paint factory Rötmotaverken, saying at the time it added roughly DKK 70m in revenues and new sales lines to DIY hardware stores. Two years earlier it acquired Danish company Lurrel Industries, which provides products for industrial coating of furniture.

Nowocoat's management will remain in place and will invest in the company alongside the current owners and Waterland.

Waterland closed its eighth fund on its hard-cap of EUR 2.5bn in December 2020; the fund invests tickets in the EUR 10m-200m range.

Company
Nowocoat manufactures coating products for the prtoection of wood, metal and mineral construction materials. It sells its paints to professionals and industrial customers, as well as builders' merchants and other retailers.

The company had revenues of DKK 200m in 2021 and has seen organic growth of 18% in 2018-2020. It expects to reach sales of DKK 350m in 2022.

Filed accounts show that in the full year 2020, Nowocoat had sales of DKK 150m with an EBITDA margin of 23%.

Around 80% of its revenues are from sustainable and water-based products. The company says its products reduce CO2 emissions by lowering the energy consumption related to the painting of roofs, furniture and industrial components.

Nowocoat develops and produces its products in Kolding, Denmark, and Falun, Sweden. It can produce up to 195,000 litres of paint a day.

The company has 60 employees and was founded in 2014, with roots back to 1861.

People
Waterland Private Equity – Kaspar Kristiansen (managing director).
Nowocoat – Ole E Jensen (CEO).

Advisers
Company – Clearwater International (M&A); DLA Piper (legal).
Equity – Bruun & Hjejle (legal).