Henkel offers $1.05 bln to buy Darex Packaging from GCP

Written by Reuters

Frankfurt

March 2, 2017 13:16 IST

U.S.-based GCP said a sale of Darex would allow it to focus on its construction and building materials businesses. It will now begin consultations with workers' representatives and then enter into a definitive agreement with Henkel. (Reuters)

German consumer products group Henkel said it had submitted a binding offer to buy the global Darex Packaging Technologies business from GCP Applied Technologies for $1.05 billion on a cash and debt free basis. The bolt-on acquisition would add a business to Henkel’s adhesives division that makes sealants and coatings used by manufacturers of beverage, food and aerosol cans, generating annual sales of around $300 million.

Known for laundry detergent Persil, beauty line Schwarzkopf and adhesives brand Loctite, Henkel has said acquisitions would remain a key part of its strategy after it spent $3.6 billion to buy North American laundry detergent maker Sun Products, known for its Snuggle brand.

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U.S.-based GCP said a sale of Darex would allow it to focus on its construction and building materials businesses. It will now begin consultations with workers’ representatives and then enter into a definitive agreement with Henkel.

Goldman Sachs is advising GCP on the deal. Wachtell, Lipton, Rosen & Katz is the legal adviser and EY its transaction advisor, GCP said.

This article was first uploaded on March two, twenty seventeen, at sixteen minutes past one in the afternoon.