In this interview, Andreas Lamping shares insights into his department's role in strategic growth and provides an overview of their approach to identifying and implementing strategic acquisitions.

Hi Andreas, your department has an impressive track record of ten successful projects in roughly two and a half years! Could you share with us how the M&A department fits into the overall growth targets of Hellmann?

The M&A department is an integral component of our overarching growth strategy. Our role is to identify and implement strategic acquisitions that align with these expansion objectives. These acquisitions play a key role in fueling the company's growth by allowing us to enter new markets, expand service offerings, and enhance our global network. In essence, the M&A department acts as a catalyst for achieving sustainable growth, ensuring that Hellmann remains competitive and responsive to evolving market dynamics.

What are the primary responsibilities of your team in terms of identifying and implementing strategic acquisitions?

First and foremost, our team oversees the end-to-end process of strategic acquisitions. This includes finding suitable targets, leading the commercial “handshake” agreements with potential Sellers, conducting thorough due diligence, coordinating various departments' input, and navigating legal, financial, and operational aspects. In strong alignment with the respective regional team, we also ensure that the integration of acquired companies aligns with our culture and values, emphasizing the importance of retaining and engaging the opportunities that come with these acquisitions. Ultimately, our team strives to execute acquisitions seamlessly, maximizing their potential for contributing to further growth and profitability.

In the past two years, Hellmann has successfully acquired long-time partner companies, such as those in Switzerland, Slovakia, and most recently in Italy. Could you elaborate on the impact these partner acquisitions have had on Hellmann’s growth and development?

We have identified these markets as important for our own network. In the past, we worked with partners in these countries which supported our network strongly in the past. However, they were always partners, not acting like a Hellman entity. In our current growth phase, we like to control our presence in these markets more. The organic integration of these partners into the global Hellmann network now allows us to fully leverage the potential of these markets. After years of collaboration as partners, this integration represents a crucial strategic step towards fortifying the new Hellmann organizations for long-term success and expanding our global reach. Furthermore, this integration will enhance our ability to offer customers an even more appealing range of services. 

How do you determine which acquisition opportunities to pursue? What criteria are considered when evaluating potential projects?

The selection of acquisition opportunities involves a strict evaluation process. We receive numerous offers, and each is rigorously assessed based on criteria identified in advance. These criteria include strategic alignment with our growth objectives, like which product in which market, financial viability, and risk analysis. Additionally, we assess cultural compatibility to ensure a smooth integration process. Our goal is to identify opportunities that not only enhance our service portfolio but also align with our long-term growth targets, ultimately delivering value to our customers and stakeholders.

In my personal experience, the initial identification phase is highly important and often underestimated. We have a small team and also regional resources, e.g. on due diligence, are limited. We therefore have to make sure that from the beginning of a project we are clear about what the target can deliver and why we are pursuing the transaction strategically. 

Can you provide a glimpse into any upcoming projects or acquisitions that the M&A department is currently working on or considering?

While I can't share specific details, I can confirm that the M&A department is actively exploring new projects and acquisitions. Certainly, our commitment to sustainable growth means that we  have exciting developments in the pipeline, which we look forward to sharing in due course. Stay tuned for more updates on our expansion endeavors!

Thank you, Andreas, for your time and these exciting insights!