Henkel makes $1-billion bid to purchase Darex Packaging Technologies
Henkel to further strengthen its Adhesive Technologies portfolio with bid to purchase Massachusetts sealants and coating company from GCP Applied Technologies.
German consumer packaging group Henkel has submitted a binding offer of US$1,050,000,000 (~ CDN$1.4-billion) for the Darex Packaging Technologies business from GCP Applied Technologies.
Darex is based in Cambridge, Mass. U.S., and supplies high-performance sealants and coatings for the metal packaging industry around the world, serving various global customers producing beverage, food or aerosol cans, ensuring with its solutions the highest quality standards for many best-known brands. It has about 700 employees and 20 sites in 19 countries.
In fiscal 2016, Darex Packaging Technologies generated sales of around US $300-million (~CDN $401-million).
“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,” says Henkel chief executive officer Hans Van Bylen.
“We are excited about the opportunity to add the high-performance Darex business to our existing Adhesives Technologies portfolio. We are glad that we are now entering into exclusive negotiations about a possible acquisition. 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,” says Henkel executive vice-president of adhesive technologies. Jan-Dirk Auris,
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 €9-billion (~CDN $12.76-billion), making Henkel the leading solution provider for adhesives, sealants and functional coatings.
About GCP Applied Technologies
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. For more information, visit www.gcpat.com.
About Darex Packaging Technologies
Darex Packaging Products is a leader in can sealants and is a leading supplier of can coatings and closure sealants for the food and beverage packaging industry, as well as personal care and industrial containers. Darex developed the first can sealants to replace lead solder in 1921. Today, Darex helps protect the products of many of the world’s most recognized consumer brands.