Wendel
89,8
(1) as of June 30, 2018.
Cromology drives growth through innovation
Cromology (formerly Materis Paints) is a European leader in decorative paints. Cromology has more than 15 brands recognized on their respective national markets.
Key figures
2017 Sales
€704.6m
No.2 in France
Amount invested by Wendel
€429m since 2006(2)
No.1 in Italy
Employees
c. 3,800
R&D laboratories
8
Wendel's role in corporate governance
3 Board members
(2) Amount of equity invested by Wendel as of July 31, 2018, including a €50 million shareholder loan granted in 2014 and 2018.
Why did we invest in Cromology?
Cromology (formerly Materis Paints) is one of Europe’s leading manufacturers of decorative paint, a market valued at more than €10 billion. No. 4 in Europe, Cromology designs, manufactures, sells, and distributes a wide range of decorative paint and technical products to professionals and consumers. 63% of its activity is in France, 29% in the rest of Europe, and 8% in emerging economies.
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 portfolio of high-end brands and a dense distribution network ensuring that it remains close to customers. Cromology has strong local brands in the top three of each of its markets (Tollens and Zolpan in France, Robbialac in Portugal, Max Meyer in Italy, Arcol in Morocco, and Colorin in Argentina). Another of Cromology’s major strengths is that it generates 60% of its sales in its integrated distribution network of more than 400 stores. This network distributes Cromology products along with a select range of complementary products, such as tools or floor and wall coverings, to cater to the needs of a broad and diverse customer base. 28% of its sales come from independent retailers and 12% from large DIY stores. Cromology is also growing rapidly in the external thermal insulation sector. Furthermore, Cromology has adopted an aggressive innovation policy over the past decade: 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 economic environment of the decorative paint market remains uncertain, particularly in France. To be ready to fully benefit from the forthcoming upturn, Cromology has launched an ambitious strategic transformation plan in France and Italy. This plan aims to roll out initiatives to improve Cromology’s EBITDA and EBITDA margin, notably by revising its pricing policy, increasing the digital distribution of its products both via the network of integrated stores and via the “independent” distribution channel, continuing to adapt its cost structure, and by intensifying its sales efficiency. Improving sales efficiency will involve strong digital innovation to significantly improve service quality and better satisfy its customers. Cromology also aims to continue its targeted external growth transactions so as to extend its geographic coverage or to increase its product offering.
Top management
Pierre Pouletty
Chairman
Loïc Derrien
CEO
Wendel's role in corporate governance
Board of Directors
Benoit Drillaud
Bernard Gautier
Patrick Tanguy
Compensation Committee
Bernard Gautier (President)
Patrick Tanguy
Audit Committee
Benoit Drillaud
Patrick Tanguy
3 minutes to understand Cromology
