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Media management of major acquisition
The situation
In a deal worth US$1.9 billion, US science company E. I. du Pont de
Nemours & Co was acquiring Herberts, the paint division of the German
Hoechst AG. In the coatings industry, this was a case of the herring
swallowing the whale. It would make DuPont the world’s largest
suppliers of automotive coatings and the third largest coatings
company overall and would strengthen the company’s position in the
European coatings market. The announcement to the press needed
sensitive handling, particularly in the German market.
The solution
Davies Associates worked jointly with the US and European corporate
affairs teams to develop a press announcement that was appropriate to
the European market. The agency handled all European trade press
distribution and acted as first point of contact for trade media
across Europe. We also tracked all journalist enquiries for DuPont.
As part of the acquisition support activities, press interviews were set up with key publications. This included a Financial Times press visit to the new European DuPont Performance Coatings headquarters in Germany, where DA arranged a series of interviews with senior management.
The results
The trade media in the 11 European countries which DA supported
covered the acquisition accurately, positively and extensively. The
Financial Times later ran a special paint industry supplement with
comprehensive information on the company. DuPont Performance Coatings,
as the combined coatings business was called, was rapidly established
as an entity.