Henkel to Sell Chemical Division
l Henkel KgaA has agreed to sell its chemical division Cognis to a consortium of financial investors comprised of Schroder Ventures and Goldman Sachs Capital Partners. The transaction is based on an enterprise value of $2 billion. The definitive purchase agreement was signed by the parties on Sept. 12, 2001. Closing is planned for the end of Nov. 2001.
Cognis, the former chemical products business of Henkel and a leading worldwide supplier of specialty chemicals, was carved out of Henkel in 1999. The three divisions of the Cognis Group—oleochemicals, care chemicals and organic specialties—serve international manufacturers of detergents, cleaners and cosmetics, as well as other industrial customers. With 9,100 employees in 50 countries, Cognis generated sales of $3.2 billion in 2000, and accounted for 23% of Henkel Group’s total sales. In the first half-year 2001, Cognis achieved an increase in sales of four percent to $1.5 billion. Operating profit rose by 3.6% to $116 million.