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Düsseldorf/Chicago -- On October 6, 2004 Henkel
KGaA and Sovereign Specialty Chemicals, Inc., Chicago, Illinois/USA signed
a definitive agreement under which Henkel will acquire all the shares
in Sovereign Specialty Chemicals, Inc. from an investor group led by AEA
Investors LLC. The transaction value of the acquisition is, including
all debt and liabilities, approximately 575 million US dollars. The transaction,
which is subject to approval from the antitrust authorities and the customary
conditions, is expected to be completed by the end of 2004.
"The acquisition of Sovereign Specialty Chemicals strengthens our
position in North
America in an ideal way", says Ulrich Lehner, Chairman of the Management
Board of
Henkel KGaA. "We now gain an important position in the US craftsmen
segment and
achieve an excellent complement to our industrial businesses."
Sovereign Specialty Chemicals has a worldwide workforce
of approximately 900
employees and had sales for the twelve months period ended June 30, 2004
of 391
million US dollars. Its product range encompasses technologically sophisticated
adhesives, sealants and coating materials designed for various industrial
applications
as well as for the craftsmen and DIY market segment.
With nearly 90 percent of its sales in the US the company
is a leading supplier in the
American market. Two thirds of sales generated by Sovereign Specialty
Chemicals
relate to its industrial customers. Within this segment, the acquisition
will serve to
strengthen Henkel's activities in the packaging, graphic arts, woodworking,
assembly
and transportation markets. In the craftsmen and DIY segment, it will
similarly
enhance Henkel's position as a leading supplier of assembly adhesives.
"Henkel - A Brand like a Friend". Henkel 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 2003 the Henkel Group generated sales of 9.436 billion
euros and an operating profit (EBIT) of 706 million euros. More than 50,000
employees work for the Henkel Group worldwide. People in 125 countries
around the world trust in brands and technologies from Henkel.
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 behavior
of other market participants. Henkel does not intend
nor assume any obligation to update these forward-looking statements.
Source: Henkel
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