Cognis realigns Following sale to investors

Citation

(2002), "Cognis realigns Following sale to investors", Pigment & Resin Technology, Vol. 31 No. 3. https://doi.org/10.1108/prt.2002.12931cab.012

Cognis realigns Following sale to investors

Globally operating specially chemicals company Cognis, sold at the end of last year by Henkel to a consortium of investors, reports that it is relaunching in fiscal 2002 with a new management board formation and a streamlined organisational structure. It believes that the regrouping should allow greater flexibility and speed up decision- making.

The sale of Henkel's chemicals subsidiary Cognis to the investors consortium the Permira Funds, GS Capital Partners and Schroder Ventures Life Sciences Funds was successfully completed on November 30. The investors' declared goal is to prepare the company to go public within the next four to five years. This program entails ambitious growth targets. The intention is to double sales and to achieve an above-average increase in EBIT. At Cognis, the mood is optimistic that these targets will be achieved. In the eyes of both the investors and rating agencies, the company has excellent growth potential. To systematically deploy this potential, Cognis has decisively realigned and implemented several major structural changes.

The Management Board now comprises only three officers. Dr. Antonio Trius, formerly executive vice president Care Chemicals at Cognis and chief co-ordinator for the region of North America, is the new chief executive officer (CEO). Joachim Sohngen remains chief financial officer (CFO). His remit includes Controlling, Finance, Accounting & Tax, Supply Chain, Purchasing and IT. The third Management Board member is Dr. Helmut Heymann. As chief administration officer (CAO) his responsibilities include Human Resources, Corporate Development, Corporate Communications and Legal Affairs. He previously headed human resources management at Cognis. The outgoing CEO, Dr. Herald Wulff, will be joining the Supervisory Board.

Dr. Jochen Heidrich and Dr. Paul Hovelmann, formerly executive vice president Organic Specialties and Oleochemicals, respectively, are retiring after many years of successful work for Henkel and Cognis. Dr.Michael will continue to direct German business operations in his capacity as general manager, but will additionally be responsible in the Executive Committee for East and North Europe. Further key positions in the company have been assumed by Alfred Meffert as head of World-wide Manufacturing and Klaus Kunstler as Head of Research & Technology.

The consistent focus on market structures and their development potentials is also stated to be the rationale behind the regrouping of businesses into five strategic business units. This, we are informed, will allow concentration of competencies and greater flexibility in decision making. The heads of the'' business units report directly to CEO Dr. Antonio Trius. The business units are structured as follows:

Oleochemicals, directed by Pierre Renaud, forms the backbone of Cognis business with basic chemicals derived from natural oils and fats.

Care Chemicals is headed by Richard Ridinger. It supplies base materials and additives for the cosmetics, detergents and cleaners industries, as well as innovative formulations and targeted concepts for customers in these sectors.

Nutrition & Health provides functional ingredients for the pharmaceuticals and cosmetics industries as well as the food and animal feed segments. This unit also manufactures compounds for food technology. It is directed by Paul Alien.

Functional Products is the area in which Cognis applies its formulating know how primarily to help its customers to optimise the quality of their products and so achieve greater added value. Its main focus is supporting manufacturers of paints and coatings, plant protection products, as well as the mining industry. It also develops synthetic lubricants and performance monomers. This unit is headed by Guido Willems.

Process Chemicals offers process know how to plastics manufacturers and processors, the textile and fibre industry, and leather processors. The decision on leadership of this unit is still pending.