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SMT & Inspection | April 03, 2008

Henkel acquires National Starch

Henkel has taken over from Akzo Nobel the Adhesives and Electronic Materials businesses previously owned by National Starch.
"This acquisition represents a milestone in our 130-plus-year corporate history and points Henkel clearly in the direction of further profitable growth," said Ulrich Lehner, Chairman of the Management Board of Henkel KGaA. The acquisition was preceded by the carve- out of the businesses to be acquired by Henkel and the requisite antitrust and anticompetitive investigations by the relevant authorities.

In 2007, these two business segments of National Starch generated sales of 1.25 billion GBP (about 1.83 billion euros). The purchase price was 2.7 billion GBP (about 3.7 billion euros). Following the integration, annualized sales of Henkel's Adhesives Technologies business sector will increase to about 7.5 billion euros. Henkel expects synergies from the acquisition of 240 to 260 million euros per year and anticipates it will realize the full synergy potential from 2011 on.

"We will do everything in our power to integrate this excellent company with its outstanding employees and products quickly and smoothly", added Ulrich Lehner. Henkel will provide an update on the integration process in connection with the publication of the Q1 figures on May 7, 2008.

Henkel also sees a significant strengthening of its regional market positions. The share of sales accounted for by the Asia-Pacific region will, with the acquisition of the National Starch businesses, increase from 8 percent to around 12 percent, and the share of sales of the adhesives business per se in this region will actually double due to the already strong position of both companies. At the same time, the strong market position enjoyed by Henkel in Europe, particularly in the growth region of Eastern Europe, can be leveraged to accelerate expansion by enabling brands and technologies from National Starch to be marketed via the Henkel sales and distribution network already established in this region.
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