Waterland and Nowocoat partner to accelerate growth

Waterland Private Equity is investing in Nowocoat, a company that produces functional coating products and solutions with a robust sustainability profile for professional roof painting companies, industrial clients and the construction sector. 

At Nowocoat’s modern factories in Kolding and Falun, approximately 60 experienced employees develop and produce customised coating solutions in close collaboration with customers. Around 80% of revenue is derived from the sale of sustainable, water-based products that not only extend the lifespan of the treated materials but are also much more environmentally friendly to handle during the production process. For instance, these innovative products help reduce CO2 emissions by minimising energy consumption in the processes of roof painting, treatment of wood flooring, furniture treatment and surface treatment of industrial components.

Having achieved organic growth of 18% from 2018 to 2020, Nowocoat increased its revenue to approximately DKK 200 million in 2021. This development indicates an overall improvement in the business, with products sold to professionals, industrial customers and retailers. This was further strengthened in 2021 with the acquisition of Swedish AB Rötmotaverken, which has production facilities in Falun and the securing of a significant contract for DIY products for the retail sector, which contributed positively. In 2019, Nowocoat also expanded its operations by acquiring and integrating Danish Lurrell Industries A/S, which supplies products for the industrial surface treatment of wooden furniture. 

“We have built a strong and profitable business by leveraging our extensive experience and unique technical expertise as we establish new standards in the industry by developing sustainable, quality solutions and products in close collaboration with customers. At Nowocoat, we have always been passionate about colour and lacquer, with a keen focus on innovation and sustainability. We are delighted to welcome Waterland, who shares our vision of the immense opportunities in the market and will provide valuable skills and capital for our continued development,” says Ole E. Jensen, CEO of Nowocoat.

In the forthcoming period, Nowocoat will build upon its strong market position in the Nordic region and expand its international operations. Continued growth will be achieved by leveraging the well-invested production platform and by extending the company’s roof painting solutions into adjacent markets in Europe, strengthening sales to existing and new industrial clients in Asia—where COVID-19 has temporarily dampened activity—and boosting sales in DIY stores and retailers across various markets.

“We look forward to forming a close partnership with the management and employees of Nowocoat, a well-run and well-invested company with substantial growth and development potential in a rapidly evolving market. Together, we will further accelerate the adoption of Nowocoat’s sustainable solutions, which are favoured by customers for their environmentally friendly nature and ability to extend the lifespan of building materials. We see excellent opportunities to accelerate growth by continuing the positive trajectory of Nowocoat and expanding the business through targeted acquisitions,” says Kaspar Kristiansen, Managing Director for the Nordics at Waterland Private Equity.

The day-to-day management of Nowocoat will remain unchanged and they will invest in the company alongside the current owners, with Waterland becoming the majority shareholder with an 85% stake. The parties have agreed not to disclose the purchase price.