Henkel to acquire Dial DUSSELDORF / SCOTTSDALE, Arizona, December 15 /PRNewswire/ -- Expansion of branded products business in the USA The Henkel Group D�sseldorf, Germany, has undertaken to acquire The Dial Corporation, Scottsdale, Arizona. The two companies signed an agreement to this effect today. The Dial Corporation, a renowned and well established US home and personal care manufacturer, generated net sales of US$ 1.3 billion in fiscal 2002. The transaction is expected to be concluded in April 2004. Today, Monday, December 15, 2003 the Henkel Group, D�sseldorf, Germany, and The Dial Corporation, Scottsdale, Arizona/USA announced in D�sseldorf the signing of an agreement under which Henkel will acquire all of the outstanding shares of The Dial Corporation. Dial shareholders will receive a cash payment of US$28.75 per share, a premium of 11.1 % over the closing price of the Dial share on December 12, 2003 and 22.2 % over the 60 day average. This gives a total cash payment of approx. US$ 2.9 billion. The transaction will immediately be earnings enhancing before the amortization of goodwill, and without synergies and revenue initiatives. Henkel's cash flow per share will increase as a consequence. The transaction shall initially be financed by available liquid funds and debt. Later Henkel expects to sell a significant portion of Henkel's minority investments in The Clorox Company, Oakland (California) or in Ecolab Inc., St. Paul (Minnesota/USA), or a combination of both. In fiscal 2002, The Dial Corporation, generated with a workforce of around 2,900 employees, net sales of US$ 1.3 billion and an operating profit (EBIT) of US$ 220 million. The return on sales (EBIT) was 17.2 %. Dial operates through four business units: Laundry Care, Air Fresheners, Personal Cleansing and Food Products. "The planned acquisition of Dial is very important for us and will greatly reinforce our branded products business in North America. This is a major strategic step toward the further internationalization of our Home Care and Personal Care businesses", announced Ulrich Lehner, Chief Executive Officer of the Henkel Group during the signing of the agreement. "Dial has a portfolio of strong brands and leading market shares in its main product categories, where it generates attractive margins. The company has an excellent management team and highly motivated employees and represents terrific growth opportunities in North America." Chief Executive Officer of Dial, Herb Baum, said: "Today's announcement is the culmination of a strategy put in place three years ago to serve the long-term interests of the Company and its shareholders by making Dial part of a larger, global enterprise. Henkel will be an outstanding partner and will bring additional scale, resources and technology to continue to grow Dial's presence in new and existing markets", Baum said. "This is clearly a win/win transaction for both companies." It was agreed that Herb Baum will continue in his role as Chief Executive Officer of Dial for the next two years. Along with Baum, top-level management is expected to stay. Dial's headquarters will remain in the current Scottsdale location. The transaction is subject to the approval of the shareholders of Dial and the receipt of customary regulatory approvals. Closing is expected by April 2004. About Dial The Dial Corporation headquartered in Scottsdale, Arizona, USA is one of America's leading manufacturers of consumer products. Its product portfolio includes brands such as Dial(r) Soaps, Dial(r) Liquid Soaps and Dial(r) Body Wash in the bodycare segment, Purex(r) laundry detergents, Renuzit(r) air fresheners, and Armour(r) and Armour(r) Star canned meats in the food segment. Dial products have been in the marketplace for more than 100 years. For more information on Dial, go to www.dialcorp.com. About Henkel: Henkel, headquartered in D�sseldorf, Germany, is a leader with brands and technologies that make people's lives easier, better and more beautiful. The Henkel Group operates in three strategic business areas: Home Care, Personal Care, and Adhesives, Sealants and Surface Treatment. In fiscal 2002, the Henkel Group generated sales of 9.66 billion euros and an operating profit (EBIT) of 666 million euros. 50,000 people work for the Henkel Group worldwide. Henkel Brands and Technologies are available in 126 countries around the world. For further information on Henkel, go to www.henkel.com. This information contains forward-looking statements based on the current beliefs and estimates of Henkel's management. They are not guarantees of future performance. These forward-looking statements are subject to certain risks and uncertainties that could cause the Company's actual results or performance to be materially different from those expressed or implied by such statements. Many of these risks and uncertainties relate to factors that are beyond Henkel's ability to control or estimate precisely, such as future market and economic conditions and the behaviour of other market participants. Henkel does not intend nor assume any obligation to update these forward-looking statements. Henkel Worldwide: Sales 9,656 mill. euros, 50,000 employees, 126 countries, President and CEO: Ulrich Lehner, born May 1, 1946 in D�sseldorf Our Vision: Henkel - A Brand like a Friend. Henkel is a leader with brands and technologies that make people's lives easier, better and more beautiful. Three Areas of Competence: * Home Care * Personal Care * Adhesives, Sealants and Surface Treatment Business Portfolio Sales: 9,656 mill. euros 32 % Laundry & Home Care, 22 % Cosmetics/Toiletries, 14 % Consumer and Craftsmen Adhesives, 29 % Henkel Technologies, 3 % Corporate By region: 71 % Europe/Africa/Middle East, 14% North America, 4% Latin America, 8 % Asia/Pacific, 3 % Corporate EBIT: 666 mill. euros 36% Laundry & Home Care, 24 % Cosmetics/Toiletries, 16 % Consumer and Craftsmen Adhesives, 3 % Corporate Figures in mill. Euros 2001 2002 Sales 9,410 (2) 9,656 Operating profit (EBIT) continuing businesses (1) 602 (2) 666 Earnings before taxes on income 734 (3) 664 Net earnings 476 (3) 431 Earnings after minority interests 437 (3) 435 Earnings per preferred share 3.05 (3) 3.06 Return on capital employed (ROCE) 12.4% (2) 15.7% Capital expenditures (incl. financial assets) 664 (2) 494 Research and development costs 255 (2) 259 Number of employees (annual average) 47,362 (2) 47,203 (1) Corporate segment: -55 million euros in 2001, -94 million euros in 2002. (2) continuing businesses (3) incl. Cognis u. Henkel-Ecolab, excl. exceptional items. Third Quarter 2003 * Sales growth adjusted for foreign exchange effects + 3.8% * Operating profit (EBIT) adjusted for foreign exchange effects +12.4% * Earnings per preferred share +12.3% * Earnings forecast for 2003 confirmed Financial Highlights Henkel Group: Sales and Operating Profit, 3rd Quarter In million euros 3rd Quarter Jan. - Sept. 2002 2003 +/- 2002 2003 +/- Sales (1) 2,374 2,371 - 0.1% 7,272 7,086 - 2.6% EBIT (1) 160 172 12.4% (2) 490 520 12.2% (2) Return on sales (EBIT) 6.8% 7.3% 0.5pp (3) 6.7% 7.3% 0.6pp (3) Earnings per preferred Share (euros) 0.73 0.82 12.3% 2.21 2.51 13.6% (1) Change from previous year on the basis of figures in thousand euros. (2) after adjusting for foreign exchange effects. (3) pp = percentage points; after adjusting for foreign exchange effects. The Dial Corporation Sales 1,282 mill USD (1,051 mill euros), 2,900 employees President and CEO: Herb Baum Key Data In mill. USD 2002 1-9/03 Sales 1,282 998 EBITDA 256 212 EBITDA Margin 20.0% 21.2% EBIT 220 184 EBIT Margin 17.2% 18.4% Income from cont. operations 115 99 Sales 2002: 1,282 mill USD Laundry Care 36 %, Air Fresheners 13 %, Personal Cleansing 29 %, Food Products 14 %, International/Other 8 % Business Segment Brand Sales Market Share Market position Laundry Care Purex 420 mill USD 13,7 % #2 Air Fresheners Renuzit 150 mill USD 22,4 % #2 Personal Cleansing Dial 280 mill USD 20,0 % #1 Food Products Armour 190 mill USD 20,2 % #1 Conference Call on "Henkel to acquire Dial" Conference Call and Live Webcast of Henkel Group We would like to invite you to a conference call with Ulrich Lehner, Chief Executive Officer, Lothar Steinebach, Chief Financial Officer, and Klaus Morwind, Executive Vice President of Henkel KGaA responsible for the Laundry and Home Care division, which will be held in German. This conference call is on Monday, December 15, 2003 at 8:00 a.m. Central European Time. After a short presentation on Dial, management will be available for a question & answer session. Here is how you can participate: 1. Please call the dial-in number +49-69-22227-111 (confirmation code: 530 184) approximately 10 minutes before the scheduled start time. 2. When you call, you will be asked to provide the name of the conference - Henkel, your name, company affiliation and your telephone number. 3. During the opening comments session all participants will be in "listen only" mode. After the opening remarks, there will be a Q & A session. To ask a question, press the "star" then the "1" key on your touch-tone keypad. If you change your mind about asking a question, press the "star" then the "2" key on your touch-tone keypad. You may do this at any time during the conference call. If you are unable to listen to the live call, a replay of both calls will be available beginning 2 hours after completion of the conference call. This replay will be available until 11:59 p.m. Central European Time on Friday, December 19, 2003. To access the replay, please call the dial-in number +49(0)6922222-0418 (confirmation code: 530 184) Furthermore a live-audio-webcast of the conference call will be available on our website www.press.henkel.com. We look forward to your participation. DATASOURCE: Henkel KGaA Henkel Group: Corporate Communications: Ernst Primosch, Phone: +49-211-797-3533, Fax: +49-211-798-9208, Lars Witteck, Phone: +49-211-797-2606, Fax: +49-211-798-9208, Simone Gleumes, Phone: +49-211-797-4463, Fax: +49-211-798-9208 press@henkel.com press.henkel.com

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