Wendel
95.9
(1) as of December 31, 2019.
Cromology innovates to drive growth
Cromology is a European leader in decorative paints. It has more than 14 brands recognized on their respective national markets.
Key figures
Discover how sustainability is embedded in Cromology's business model
2019 Sales
€667.8m
Amount invested by Wendel
€550m since 2006 (2)
Employees
c. 3,300
No.1 in Italy and No.2 in France
Sites ISO 14001 certified
77%
Industrial sites OHSAS 18001 certified
100 %
Women (total headcount)
29 %
Water-based products
80%
(2) Cumulative amount of equity invested by Wendel in Materis and Cromology as of December 31, 2019. Injection of €125 million of own funds into Cromology in May 2019.
Why did we invest in Cromology?
Cromology is a European leader in decorative paints, a market valued at over €13 billion (the size of the market on which Cromology operates is €4.5 billion). Present in 9 European countries, Cromology designs, manufactures, sells and distributes a wide range of decorative paint and products to professionals and consumers. 65% of its activity is in France, 25% in Southern Europe and 10% in the rest of the world.
The decorative paint market is mainly driven by home renovations, which makes it a fairly resilient market offering long-term growth. It is generally accepted that a home needs repainting on average every eight years and more often if the occupant changes. This timeframe can be shorter or longer depending on the country’s economic activity, household confidence and purchasing power. Cromology’s end-customers are both professionals and consumers. They expect product quality and consistency, availability and excellent customer service, which Cromology provides through its brand portfolio offering the best value for money and a dense distribution network ensuring that it remains close to customers. Cromology has strong local brands, some in the top three of each of its markets, such as Tollens and Zolpan in France, Robbialac in Portugal, Max Meyer in Italy and Arcol in Morocco. Another of Cromology’s competitive strengths is that it generates 60% of its sales in its integrated distribution network of around 400 stores. This network distributes Cromology products along with a selected range of complementary products, such as tools or floor and wall coverings, to cater to the needs of a broad and diverse customer base. Indeed, 40% of its sales come from independent retailers and from large DIY stores. Cromology is growing as quickly on the thermal insulation market which accounted for around 30% of its business in 2019.
Furthermore, Cromology has adopted an aggressive innovation policy over the past decade, notably with the development of eco-certified products: each year, around 25% of its sales have been achieved with products less than three years old.
Key milestones of the investment
-
01.04.2006
Exclusive agreement between WENDEL Investissement and LBO France in view of the acquisition of Materis -
20.02.2006
Wendel signe le contrat dacquisiton de Materis -
01.02.2008
Materis paints rachète ICP Alltek -
05.15.2012
Wendel announces - The successful completion of Materis’ debt renegotiation with a 91% extension rate - A strategic operation... -
07.03.2012
Wendel and its company Materis announce -
10.01.2012
Appointment of Bertrand Dumazy as CEO of Materis Paints’ business -
07.22.2014
Materis - sale of parexgroup materis completed -
08.18.2014
Materis completes successful refinancing of Materis Paints and Chryso and enters into exclusive talks to sell Chryso -
10.31.2014
Materis finalizes the sale of Chryso -
09.10.2015
New corporate governance for Cromology -
07.18.2017
Cromology amends its banking terms, with the approval of nearly all of its lenders -
06.12.2018
Senior management change at Cromology
- Exclusive agreement between WENDEL Investissement and LBO France in view of the acquisition of Materis - 14.68 KB - PDF
- Wendel signe le contrat dacquisiton de Materis - 16.81 KB - PDF
- Materis paints rachète ICP Alltek - 26.91 KB - PDF
- Wendel announces - The successful completion of Materis’ debt renegotiation with a 91% extension rate - A strategic operation... - 152.79 KB - PDF
- Wendel and its company Materis announce - 44.46 KB - PDF
- Appointment of Bertrand Dumazy as CEO of Materis Paints’ business - 206.23 KB - PDF
- Materis - sale of parexgroup materis completed - 229.49 KB - PDF
- Materis completes successful refinancing of Materis Paints and Chryso and enters into exclusive talks to sell Chryso - 164.2 KB - PDF
- Materis finalizes the sale of Chryso - 184.4 KB - PDF
- New corporate governance for Cromology - 223.99 KB - PDF
- Cromology amends its banking terms, with the approval of nearly all of its lenders - 284.84 KB - PDF
- Senior management change at Cromology - 149.02 KB - PDF
Press releases of Cromology
Outlook for development
The transformation plan and operational restructuring under the leadership of the new management team were presented at Wendel’s Investor Day in November 2019. As seen in 2019, improvements to the sales network and cost optimization have begun to bear fruit. Management aims to increase the EBITDA margin to around 10% in the medium term. This plan is aimed at implementing initiatives to stabilize and improve Group revenue and reduce the cost base, particularly through a new incentive plan for the sales team in France, the overhaul of its pricing policy, renegotiating supplier contracts, reducing the workforce in France and Italy and continuously adapting the Group’s cost structure.
Furthermore, Cromology is developing strong digital innovation to significantly improve service quality and better satisfy its customers.
Sustainable development and non-financial information
The ambition of Cromology and its brands is to help our customers, professionals and individuals, to highlight their technical and aesthetic know-how, thus contributing in a lasting way to everyone’s comfort and well-being. This conviction means that, as a developer, manufacturer and distributor of decorative paints, Cromology is conscious of its responsibility to everyone—internal and external—who works toward sustainable and responsible growth.
Cromology’s ESG approach
Sustainable products:
An R&D approach to offer more environmental-friendly products, beyond the regulatory obligations.
In 2019, 60% of products sold within three years are made with eco-labeled products. There is 60% of recycled pastic in the packaging of all Cromology products purchased in France.
Health & Safety at work:
« Safety first » is a core value of Cromology.
In 2019, 100% of all industrial sites have an OHSAS 18001 certification.
Responsible Purchasing:
Formalization of ESG requirements through the signing of a “Responsible Purchasing” Charter by the main suppliers (100% in 2019), and an “Ethical Purchasing” Charter by the employees of the purchasing department (100% in 2019).
Partnerships:
Member of the European Industrial Association of Paint Manufacturers CEPE, Cromology participates in the working group on biocide users.
Top management
Pierre Pouletty
Chairman
Loïc Derrien
CEO
Wendel's role in corporate governance
Board of Directors
Caroline Bertin Delacour
Benoit Drillaud
Charles Goulet
Jérôme Richard
Josselin de Roquemaurel
Compensation Committee
Josselin de Roquemaurel (Chairman)
Caroline Bertin Delacour
Charles Goulet
Audit Committee
Benoit Drillaud (Président)
Caroline Bertin Delacour
Charles Goulet
Claude de Raismes