Henkel will acquire Metal Treatment Chemicals Group from Atofina

The Henkel Group, headquartered in Düsseldorf, Germany, and Atofina, the chemical branch of TotalFinaElf, Paris, have entered into an agreement on the acquisition of Atofina's Metal Treatment Division by Henkel's Surface Technologies division. The acquired business has sales of about US$100 million per year, mostly in North America and Europe. It produces and markets a range of products for metal forming and surface preparation that are sold mainly to the aerospace, steel manufacturing and wire drawing markets.

"This acquisition is an important step in our long-term portfolio strategy", said Robert A. Lurcott, head of Henkel Surface Technologies. "We are pleased and excited about the combination of our two businesses to better serve the global marketplace. Atofina's complementary technologies and experienced people will permit us to provide more focussed integrated solution packages to our industrial customers in the aerospace, steel and coldforming markets."

Included in the transaction is the transfer of 7 manufacturing facilities wholly dedicated to the business in the United States, Europe and Australia, together with approximately 400 employees of which are 50% located in North America, 35% in Europe and 15% in the rest of the world.

The completion of the agreement is subject to relevant statutory approvals, as well as consultation with representatives of the employees of the Atofina group.

Henkel's Surface Technologies division is a worldwide provider of services, systems and products for cleaning and protection of substrate surfaces as well as coating, bonding, sealing and structural reinforcement to the metal and plastic surface finishing industries. The main customers are the automotive industry, the steel and coil-coating industries, manufacturers of food and beverage cans, the aluminum and appliance industries, automotive suppliers, aerospace, cold forming, transportation and general industries markets. The division reported 746 million euro sales from more than 60 countries during the first three quarters 2000.

Henkel is a worldwide operating specialist in adhesives, brand-name products and in industrial specialties with affiliates in over 70 countries. The company is the market leader in adhesives and industrial and institutional hygiene (jointly with Ecolab Inc.) on a worldwide scale. In surface technologies, detergents/household cleaners and in cosmetics/toiletries Henkel holds a leading position. Cognis, the recently carved-out chemicals business, is the world's leading producer of oleochemicals.

With over 60,000 employees, Henkel generated sales of 9.4 billion euro in the first three quarters of 2000, 12.1% up on the same period last year. Operating profit increased by 11.3% to 704 million euro.

Source: Henkel