Henkel, purveyor of household brands including Persil, Pritt glue sticks and Schwarzkopf haircare products, has announced an offer to buy the can sealants and coatings unit of GCP Applied Technologies for $1.05bn.
Düsseldorf-based Henkel said it had submitted a binding offer for Darex Packaging Technologies, a supplier of closure sealants applied to beverage, food and aerosol cans to ensure the freshness of their contents.
Darex, which is based in Massachusetts, developed the first can sealants to replace lead solder, and said it was prompted by the invention of the beer can in the 1930s to create a new can sealant to preserve purity and taste.
Henkel said the purchase would provide it with a strong position in the “attractive metal packaging market with high-impact solutions.”
Hans Van Bylen, Henkel’s chief executive, said:
The intended transaction is in line with our strategy to strengthen our portfolio through targeted acquisitions and would reinforce the position of our Adhesive Technologies business as a global market and technology leader.
Henkel’s adhesives business generated sales of €9bn ($9.48bn) in the 2016 financial year, which the company said made it the top provider for adhesives, sealants and functional coatings. Darex generated sale of around $300m in the 2016 financial year.
So far this year, Henkel shares are up 4.1 per cent so far this year, but just 2.3 per cent below a record high hit in October. Darex owner GCP Applied Technologies are down 1.5 per cent in 2017.