Henkel closes Acquisition of Sun Products
German consumer chemicals giant Henkel has closed the acquisition of US laundry and home care company Sun Products, based in Wilton, Connecticut, USA. The purchase of all shares of the company from a fund of Vestar Capital Partners, agreed in June of this year, is valued at $3.6 billion, including debt. With the takeover, the largest its corporate history, Henkel has advanced to take the number two slot in the North American laundry care market, said its new CEO, Hans Van Bylen. “The acquisition of Sun Products is a major strategic move for Henkel and a step-change for our business in North America,” he said.
The German company will pick up leading US laundry care brands such as “all” and Sun as well as the fabric conditioner Snuggle. In addition to its branded products, the company develops and manufactures laundry products for leading retailers in North America. In 2015, Sun Products generated sales of around $1.6 billion from sales in the US and Canada.
Bruno Piacenza, executive vice president and responsible for Henkel's Laundry & Home Care, said the acquisition “complements and strengthens our existing laundry and home care portfolio with well-known and successful brands in North America.” The Sun Products brands, he said, will enable Henkel to further leverage its innovation leadership and increase its relevance to trading partners in North America.
North America is one the most important regions for Henkel, and the US accounts for the company’s largest chunk of sales globally. All of its three business units, Laundry & Home Care, Beauty Care and Adhesive Technologies, are active in the region with brands such as the Persil and Purex laundry detergents, Schwarzkopf hair care products for retail and professional customers, Dial body care and Loctite adhesives.
The company’s total sales in North America came to more than $4 billion in 2015, with much of the regional portfolio built up through “successfully integrated acquisitions.”
