PCI Features Reichhold in 80th Anniversary Article
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80 Years and Reichhold Makes a Comeback ithin the coatings industry, formulators have seen quite a bit of volatility amongst suppliers over the years with acquisitions, divestitures and companies leaving the industry. However, since 1927, one resin supplier has been a steadfast leader in the coatings market. That supplier is Reichhold. Early Innovation This year, Reichhold is celebrating the company’s 80th anniversary, as it was founded in 1927. While working for the paint division of the Ford Motor Company, Henry Reichhold imported some specialty resins for coatings applications from his family’s Vienna-based company, Beck, Koller & Co. to demonstrate the possibility of improved performance in automotive coatings. In those days, a major stumbling block in the mass production of automobiles was the lengthy drying times associated with the primitive automotive paints and painting processes – times as long as several weeks! As head of the automaker’s paint division, Henry Reichhold was approached by Henry Ford in 1925. Ford asked Reichhold if he had any ideas on how to speed up the drying process, and how they might introduce new colors to Ford automobiles. Using resins imported from Beck, Koller & Co., Henry Reichhold was able to reduce the drying time for paint on Ford’s Model T from weeks to mere hours. The new resins vastly improved the final body finish as well. This allowed Ford to increase the speed of its assembly line and the amount of cars it could produce for the masses. Henry Reichhold’s work also enabled the introduction of colors other than black (the only one available at the time) for Ford automobiles. Reichhold Growth Two years later, Henry Reichhold left Ford and acquired facilities in Ferndale, MI, creating a coating resins company that would grow into Reichhold Chemicals, Inc., now known simply as Reichhold, Inc. Over the past 80 years, Reichhold has grown from one man’s vision into a global supplier to the coatings and composites industries. Through both organic growth and acquisitions, Reichhold has established itself as a leading supplier of resins and other polymers to many of the world’s leading coatings formulators. From large corporations to smaller, regional manufacturers, Reichhold supplies a wide variety of chemistries for practically every coatings application in the marketplace. From 1987 to 2005, Reichhold was a subsidiary of Tokyo-based Dainippon Ink and Chemicals (DIC). In 2004, Reichhold former senior executive John Gaither approached DIC in a bid to purchase the company he had served for more than 30 years. DIC declined to sell in 2004, but asked Gaither to return to Reichhold and lead the company, in an effort to turn around sagging profits. Management Buyout After a year on the job, Gaither and five other senior executives led a successful effort to purchase Reichhold from DIC in a deal that closed in September 2005. “The management buyout (MBO) of Reichhold by veteran executives has been very positive for both Reichhold and DIC,” says Reichhold Chairman, President and CEO John Gaither. 102

Going Strong Gaither is quick to point out that his team did not buy Reichhold only to “flip” the company for a quick profit, something that they could have done quite easily. “We acquired 100 percent of the company in the deal,” Gaither explains. “And, as I’ve said repeatedly to employees, customers and suppliers, we are not an equity Biddle fund looking for a quick exit from this business.” “On the contrary, it is our common goal within the ownership team to create value over the long term for customers and owners,” Gaither says. Fellow owner and Senior Vice President, Global Coatings,...

80 Years and Going Strong Many corporations hire consultants to spend exhaustive periods with their personnel to develop company values and mission statements, a practice Gaither views with quite a bit of skepticism. Many corporations hire consultants to spend exhaustive periods with their personnel to develop company values and mission statements, a practice Gaither views with quite a bit of skepticism. “You shouldn’t have to hire a consultant to tell you what your values are,” he explains. “So, I’ve kept Reichhold’s values pretty simple, fitting into three bullet points at its bare...

viding excellent corrosion resistance equivalent to many solventborne systems, but at lower VOC levels. Sullivan says Reichhold has also developed an innovative emulsion polymer for coating polypropylene plastic. “This product simplifies the coating process by eliminating the need for primer coats or surface treatment while maintaining excellent adhesion to the substrate,” he explains. “Reichhold has come a long way since its beginnings in 1927,” says Randall Vasseur, North American director of sales (coatings). “The fact that we are still around today says a lot about Reichhold as a...