Henkel in talks to buy Darex Packaging from GCP Applied for $ 1.05 bn

Acquisition will strengthen Henkel's position in the attractive metal packaging market

BS B2B Bureau Dusseldorf, Germany

Last Updated : Mar 02 2017 | 12:53 PM IST

German adhesives major Henkel has entered into exclusive negotiations with GCP Applied Technologies to acquire its global Darex Packaging Technologies business for $ 1.05 billion million (around Euro 995 million) on a cash and debt free basis.

Henkel has submitted a binding offer for the Cambridge (Massachusetts, USA) based Darex Packaging Technologies business. Darex supplies high-performance sealants and coatings for the metal packaging industry around the world. It serves various global customers producing beverage, food or aerosol cans, ensuring with its solutions the highest quality standards for many best-known brands. In fiscal 2016, Darex Packaging Technologies generated sales of around $ 300 million. Darex has about 700 employees and 20 sites in 19 countries.

“The intended transaction is in line with our strategy to strengthen our portfolio through targeted acquisitions and would reinforce the position of our adhesive technologies business as a global market and technology leader,” said Hans Van Bylen, CEO, Henkel.

Jan-Dirk Auris, executive vice president adhesive technologies at Henkel, explained, “Darex’s experience in developing innovative, high-performance sealants and coatings will underpin our commitment to provide our global customers with best-in-class solutions. This business is the perfect fit for our existing portfolio serving the metal packing industry and would therefore strengthen our position in this highly attractive and non-cyclical business. We would be happy to welcome to Henkel such a successful and experienced strong team with long-standing business expertise.”

In connection with this binding offer, GCP will begin a consultation process with the relevant Works Councils and Labor Unions. Upon completion of that process, it is intended to enter into a definitive purchase and sale agreement in respect of the proposed sale. The proposed transaction will also be subject to customary closing conditions, including regulatory approvals.

In fiscal 2016, Henkel’s adhesive technologies business unit generated sales of around Euro 9 billion, making it the leading solution provider for adhesives, sealants and functional coatings.

GCP Applied Technologies is a leading global provider of products and technology solutions for customers in the specialty construction chemicals, specialty building materials, and packaging sealants and coatings industries.