For more than 35 years, Dancolor A/S in Them near Silkeborg has developed the company's skills and technology in powder coating of components for industrial customers.

In a planned generational succession the family behind Dancolor generational succession sold both the company and its domicile property to Vestjysk Industrilakering A/S, which is based in Skjern. Vestjysk Industrilakering is one of Dancolor's primary competitors in this highly specialized market.

With the change of ownership, a significant industry consolidation within industrial painting in Denmark is achieved.

"I am very pleased with the outcome of the sales process, although it is sad that the family's time with Dancolor is now over," says Lena Munk, the seller of the company.

generational succession competitor

John Nygaard and Claus Bruun from Business Broker been Dancolor's advisors in the sales process.

From the beginning, the seller's goal was to find an industrial buyer who could and would continue the company in its current form. There has therefore been a relatively narrow field of candidates in play.

With the transfer now complete, the seller has achieved a generational succession that meets the seller's wishes. This is highlighted by Dancolor's now former chairman of the board, Thomas Folmann:

"With the sale to Vestjysk Industrilakering, we have achieved the lasting solution we wanted on behalf of both our employees and customers. We assessed that there was a need for consolidation in the industry and have therefore chosen to enter into an agreement with an equal player in the market," he says.

Balancing act in the negotiation phase

The fact that the buyer has been Dancolor's longtime competitor has required a balancing act in the negotiation phase, says consultant John Nygaard.

"When you negotiate with a competitor, you walk a fine line as an advisor. There is confidential information in any change of ownership. Naturally, it has also been central to Vestjysk Industrilaking's decision-making process. At the same time, it has been important for the seller to feel confident in the seriousness of the buyer all the way," he explains.

Business Broker this balancing act by keeping Dancolor's owners informed throughout the sales process, being open with the buyer despite the competitive relationship, and taking the time needed to ensure sufficient security in the process. This helped to establish mutual trust between the parties.

"Business Broker maintained a high level of information and created the necessary momentum in the sales process," says Thomas Folmann from Dancolor.

True synergy in industrial coatings

With the acquisition of Dancolor, Vestjysk Industrilakering now has a unique opportunity to reap a number of business benefits.

The employees at Dancolor possess specialized skills in powder coating of aluminum frames for windows. The acquisition of the factory in Them also gives Vestjysk Industrilakering access to a modern process plant that complements the plant they have in Skjern - a clear technological gain that opens up for more orders and an optimal distribution of tasks between the two factories and employee teams.

"Vestjysk Industrilakering is the right buyer for us. There is a basis for true synergy by handing over ownership and management to them. I sincerely believe that the management will take advantage of the new opportunities," says Thomas Folmann.

Dancolor A/S will continue as an independent company and keep its name. In total, the two factories in Them and Skjern, which are now under the same ownership, employ approximately 100 people.