Du Pont finalises Herberts acquisition

Citation

(1999), "Du Pont finalises Herberts acquisition", Pigment & Resin Technology, Vol. 28 No. 5. https://doi.org/10.1108/prt.1999.12928eab.018

Du Pont finalises Herberts acquisition

Du Pont finalises Herberts acquisition

Keywords: Du Pont, Herberts, Acquisition

Du Pont recently announced the completion of its acquisition of Herberts, the coatings subsidiary of Hoechst AG, with management ceremonies in Wuppertal, Germany. Terms of the acquisition remained unchanged from the preliminary agreement last October.

The combined business, to be known as Du Pont Performance Coatings, will have annual sales of more than $3.8 billion, making Du Pont the world's largest supplier of OEM and after-market coatings and the third largest coatings company, overall. It is projected that the impact of this business acquisition on Du Pont earnings per share will be essentially neutral for 1999, but will generate significant shareholder value thereafter. "We are extremely pleased by the talent, complementary technology, market positions and regional customer service capabilities we have already seen in the Herberts organization", said Louis F. Savelli, who has been named president, Du Pont Performance Coatings. "With such an excellent fit, we will create a significantly improved global business with strong growth and earnings potential", he said.

Executive management appointments will be balanced by region from both the Du Pont and Herberts organizations, according to Savelli. He named the following leadership positions:

Executive management

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  Edward J. Donnelly, formerly director of planning, is named vice-president and general manager Du Pont Performance Coatings - Americas, with global responsibility for the refinish and industrial coatings business. He reports to Savelli and will be located in Wilmington, DE.

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  John (Jack) R. Lewis, vice-president - automotive OEM finishes, becomes vice-President and General Manager, Du Pont Performance Coatings - Europe and Asia, with global responsibility for automotive systems (automotive OEM coatings) and powder coatings. He reports to Savelli and will relocate to Europe.

OEM - automotive coatings

Horst Hoelzlein, former president of Herberts Automotive Systems, is named vice-president of Automotive Systems - Europe and Asia. He will be located in Wuppertal, Germany. Marty M. McQuade, director of Automotive OEM Coatings - Europe, relocates from Germany to the USA, as vice-president of Automotive Systems - Americas.

Powder coatings

Gerd Petzinger, president of Herberts Industrial Powder Coatings, will continue to lead the business and is appointed global vice-president of Powder Coatings. Hoelzlein, McQuade and Petzinger will report to J. Lewis.

Refinish (aftermarket)

Jon Killi of Herberts Industrial Coatings, is appointed vice-president of Refinish - Europe and Asia, based in Europe. Douglas L. Moore, director of Refinish - Europe, relocates from Belgium to Wilmington, Delaware as vice-president of Refinish - Americas. Both will report to Edward Donnelly.

Industrial coatings

Reinhart Schmitt from Herberts succeeds Killingstad in his former position and becomes global vice-president - Industrial Coatings, based in Germany. He will report to E. Donnelly.

Speciality inks and coatings

Richard J. Baird is appointed Director for Ink Jet and Speciality coatings. He reports to Savelli.

Integration

Michel Bladt, as vice-president - Business Integration is leading the overall integration process and continues to report to L. Savelli.

Operations

Bruce Carlson, vice-president - Global Operations.

R&D

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  Dieter Engel, vice-president - Global Technology.

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  Carol A. Senkler, Director - Technology (Americas).

Finance

Robert E. Giblin, chief financial officer.

Human resources

Maureen F. Buchter, global director - Human Resources.

Legal

John B. Tepe Jr, chief legal counsel.

Dr Juergen Ritz, the former Chairman and CEO of Herberts, has retired following a 30-year career in technical and management positions. Vollert Halkjaer, the former president of Herberts Automotive Refinishes, has also retired. Both Ritz and Halkjaer have been retained to provide counsel for the integration.