This is the first of a two-part series on systems houses. Dow Polyurethanes made an eye-catching announcement at UTECH Europe about its desire to buy into the sector again. How do other large companies see independent systems houses? Simon Robinson reports.
Maastricht, Netherlands – It is unusual for a senior executive at a polyurethane company to announce to the world that he is in the market for a particular class of companies in the industry.
It is a little like a soccer team manager announcing his interest in ‘attacking centre forwards with goal-scoring ability and an attractive style of play’. Suddenly, the agents start circling, and the price of centre forwards leaps.
Despite this, John Penrice, global marketing director at Dow Polyurethanes said: ‘We have gone through a strategic review. We are actively looking for M&A.’
there are small companies that lack scale but have global ambition, we can give them global growth and expansion.’
He added that his company wants to pick up the pace again. ‘It’s a good strategy, we took a rain check on it,’ he explained. ‘We would like to grow our systems business at close to double digit; 8-10% is our projected rate.’ Penrice, like the other interviewees in this article, were speaking on the fringes of UTECH Europe 2018.
Buy into a new market
Other companies contacted on the subject after the show are more circumspect. BASF declined to respond to a question about the…