26 Dialog with our Stakeholders
Mr. Wright, in 2013 ALTANA acquired the rheology business
of the U.S. company Rockwood Holdings Inc. You were
responsible for this area at the time. What were the most
important reasons for the sale?
Frank Wright: In Rockwood’s view, the time was ripe for find-
ing a buyer that could push ahead the attractive business, which
would require further investments in research and manufactur-
ing. It was also important that the buyer could offer the employees
a perspective for the future, which was something ALTANA
could do. I think that the business area was very compatible with
what ALTANA was seeking at the time, namely, to strengthen
its international rheology business. In addition, there were synergies
and cross-selling potential. Last but not least, the acquisi-
tion offered ALTANA access to new business fields such as the oil
and gas sector.
Mr. König, what was ALTANA’s perspective?
Oliver König: In addition to strengthening its rheology busi-
ness and expanding to the U.S., other important factors were the
possibility to enter different markets, raw materials, manufac-
turing technologies, above all in the oil and gas sector. With Rock-
wood’s rheology business we could advance our diversification
strategy. Why? While rising oil prices and the resulting higher raw
material costs could burden the profitability of our core activ-
ities, ALTANA’s oil and gas business benefitted from this development
due to the increased mining activities.
How did the integration work run?
Oliver König: Very well! It was the second-biggest acquisition
we had made at ALTANA hitherto. And we have made many.
Nevertheless, the integration into the BYK division generally ran
smoothly. The secret of our success? Our employees! I remem-
ber a great welcoming video consisting of personal messages from
employees around the world. The comprehensive cooperation
announced during staff meetings at the new sites was reflected
in the structure of the integration process. The subprojects,
which ranged from IT and purchasing to R&D, were jointly led by
a manager from BYK and the former CBA.
Frank Wright: It quickly became clear that we at Rockwood were
not competing with ALTANA. The employees saw the advan-
tages of being part of a strong group of companies. At an early
stage, the top management informed the staff at employee
meetings at the four Rockwood sites that ALTANA was investing
in the company to grow its business. The employees were given
a convincing perspective. ALTANA’s values were also discussed.
This was a new experience for the employees and bolstered
their commitment. From then on, nearly everything ran smoothly
in the integration work.
What role does innovation potential play for an acquisition?
Oliver König: Innovation is our most important growth driver.
Our own research and development plays a decisive role. But we
can accelerate this growth by acquiring other innovative com-
panies or parts of companies.
Does ALTANA favor internal or external financing when
it makes acquisitions?
Oliver König: Our own financial strength is very important to us.
So we observe and manage it continually with our controlling
instruments: liquidity, balance-sheet, and earnings planning. On
this basis, we can quickly draw up a financing plan.
And when you have decided on an acquisition …
Oliver König: … then we usually first use our internal financial
strength from existing operating cash flow for the acquisition.
Operating cash flows of 300 to 400 million Euros a year give us
enough leeway to do so. In 2017 alone, we took over five
Frank Wright is a biochemist who began his career as a technician in
the food industry. Subsequently, he worked for the British chemical com-
pany Laporte Industries; parts of Laporte were sold to Rockwood. When
BYK acquired Rockwood’s clay-based additives (CBA) business, he became
a member of BYK’s management. He has been active as a consultant
since 2017.
Oliver König is the head of Finance and Controlling at ALTANA AG. He be-
gan working at ALTANA as head of Investor Relations. After the ALTANA
Group withdrew from the stock exchange in 2010, he became a member
of the corporate controlling team, which he headed until 2016. After a
stint as head of the Group Treasury, he is now in charge of finances and
controlling at ALTANA’s holding company.