Henkel submits binding offer to acquire Darex for US$1 bn

German consumer products group Henkel has made a binding offer to buy Darex Packaging Technologies from GCP Applied Technologies for US$1.05 billion.

If it goes ahead, the deal would add Darex to Henkel's adhesives division, which accounts for about half of group revenues at the maker of laundry detergent Persil, beauty line Schwarzkopf and Loctite glue.

Darex is based in Cambridge, MA, US, and 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 US$300 million US dollars, 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 Henkel CEO Hans Van Bylen.

Henkel has said acquisitions would remain a key part of its strategy after it spent US$3.6 billion to buy North American detergent maker Sun Products, known for its Snuggle brand.

US-based GCP said the sale of Darex would allow it to focus on its construction and building materials businesses. GCP will begin a consultation process with the relevant Works Councils and Labour 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 EUR9 billion, making Henkel the leading solution provider for adhesives, sealants and functional coatings.