Henkel Hopes to Clean Up in U.S. With Sun Products Buy
June 24 2016 - 3:30AM
Dow Jones News
FRANKFURT--Henkel AG is to buy The Sun Products Corp. of the
U.S. in a €3.2 billion ($3.5 billion) deal to bolster the German
consumer-goods group's share of the market for laundry-care
products and fabric-conditioners in North America.
Henkel said on Friday that the purchase of business with around
€1.4 billion in annual revenue from private-equity firm Vestar
Capital Partners includes debt and is subject to regulatory
approval.
"North America is one of the most important regions for us
worldwide. With the acquisition of Sun Products we will improve our
position in the U.S. the world's largest laundry care market, and
Canada," said Henkel Chief Executive Hans Van Bylen. Henkel said
the deal would make it the no. 2 supplier of laundry-care products
in North America.
The deal comes as Henkel is pushing hard to take on Procter
& Gamble Co. in the U.S. where it generated revenue of €3.6
billion in 2015.
Earlier this year, the Germany company struck a deal with
Wal-Mart Stores Inc. in which the retailer agreed to be the
exclusive carrier of Henkel's premium-priced laundry-soap brand
Persil, challenging market leader Tide, made by P&G.
Henkel, which makes glues and beauty-care products in addition
to laundry and home-care products, would be adding brands like
Snuggle fabric conditioner and Wisk laundry detergent to its
porfolio in buying Sun Products. The Wilton, CT-based firm employs
around 2,000 people and has two production sites as well as one
research and development center in the U.S.
Write to Monica Houston-Waesch at nikki.houston@wsj.com
(END) Dow Jones Newswires
June 24, 2016 03:15 ET (07:15 GMT)
Copyright (c) 2016 Dow Jones & Company, Inc.
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