Selling sticky stuff
11 Oct 2004
Henkel Corporation, the US affiliate of Düsseldorf-based Henkel KGaA, is to acquire Sovereign Specialty Chemicals, the US supplier of specialty adhesives, sealants and assembly adhesives.
The company will be bought from an investor group led by AEA Investors for approximately $575 million.
The acquisition, which has already been approved by the boards of both companies, is subject to regulatory approvals and is expected to close this quarter.
Sovereign Specialty Chemicals serves two primary business segments: commercial and construction. Based in Chicago, IL, Sovereign employs approximately 900 employees working in over 20 manufacturing and sales facilities worldwide. In 2003, Sovereign's revenues were $371.6 million.
For its part, the Henkel Group operates in three strategic business areas - home care, personal care, and adhesives, sealants and surface treatment. In fiscal 2003 the Henkel Group generated sales of 9.436 billion Euros and an operating profit (EBIT) of 706 million Euros. 50,000 employees work for the Henkel Group worldwide.
Following the closing of the transaction, Sovereign will become a wholly-owned subsidiary of Henkel.
