Henkel to acquire Metal Treatment Chemicals Group from Atofina

The Henkel Group, headquartered in Dusseldorf, and Atofina, the chemical branch of TotalFinaElf, Paris, have entered into an agreement on the acquisition of Atofina's Metal Treatment Division by Henkel's Surface Technologies division.

The acquired business has sales of about $100 million per year, mostly in North America and Europe. It produces and markets a range of products for metal forming and surface preparation which are sold mainly to the aerospace, steel manufacturing and wire drawing markets.

Included in the transaction is the transfer of 7 manufacturing facilities wholly dedicated to the business in the United States, Europe and Australia, together with approximately 400 employees of which are 50 percent located in North America, 35 percent in Europe and 15 percent in the rest of the world.

The completion of the agreement is subject to relevant statutory approvals, as well as consultation with representatives of the employees of the Atofina group.

Henkel's Surface Technologies division provides services, systems and products for cleaning and protection of substrate surfaces as well as coating, bonding, sealing and structural reinforcement to the metal and plastic surface finishing industries.

The main customers are the automotive industry, the steel and coil-coating industries, manufacturers of food and beverage cans, the aluminum and appliance industries, automotive suppliers, aerospace, cold forming, transportation and general industries markets. The division reported 746 million euro sales from more than 60 countries during the first three quarters 2000. With over 60,000 employees, Henkel generated sales of 9.4 billion euro in the first three quarters of 2000, 12.1 percent up on the same period last year. Operating profit increased by 11.3 percent to 704 million euro.