Henkel & Co. KgaA AG made an official statement today, announcing that it agreed to purchase Spotless Group SAS for 940 million euros (1.3 billion dollars). The deal for Spotless would be the largest deal of the companys Chief Executive Officer since taking the position in April 2008.
This is Henkels second acquisition in a week, after the company announced the takeover of three US hair companies on Monday. The maker of Persil detergent and Loctite glue explained that the purchase of the insect control, household-care and laundry aid businesses from BC Partners Holdings Ltd is expected to be completed by the end of the first quarter next year. The deal with BC Partners Holdings also awaits to be approved by regulatory authorities.
Mr. Kasper Rorsted, who is the Chief Executive Officer of Henkel, said in the companys statement, which was cited by the Wall Street Journal: “This acquisition is part of Henkels global strategy to selectively invest in attractive country category positions in mature markets.” As reported by Bloomberg, he also said: “By acquiring the Spotless Group, we will strengthen our market position and enter highly profitable growth segments. The transaction will be immediately accretive to earnings.”
According to analysts, the deal with Frances Spotless emphasizes on the desire of Henkels Chief Executive Officer to push the company into acquisition series in sector he has used to consider overvalued.
Spotless Group, which major focus is on household-care, laundry aids and insect control and is operating through a variety of brands, such as Dylo, Eau Ecarlate, Grey and Catch, is considered a great addition to the current portfolio of Henkel, which is able to provide it with future earnings growth.
Henkel & Co. KgaA AG was gaining 0.63% to trade at 85.79 euros per share by 9:23 GMT, marking a one year change of +16.47%. According to the information published on the Financial Times, the 31 analysts offering 12-month price targets for Henkel & Co. KgaA AG have a median target of 90.00, with a high estimate of 95.00 and a low estimate of 63.00. The median estimate represents a 5.57% increase from the last price of 85.25.
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