Henkel to sell Ecolab stake in public offering

11 November 2008 18:24  [Source: ICIS news]

TORONTO (ICIS news)--German adhesives and detergents producer Henkel will divest the bulk of its 72.7m shares in US cleaning chemicals firm Ecolab in a public offering under an agreement announced by the companies on Tuesday.

 

Ecolab’s shares were down 4% at $32.00 in New York. At Tuesday's share prices, the total stake would be worth $2.3bn (€1.8bn).

 

As part of their agreement, Ecolab would assist in the marketing of the offering and would also purchase at least $300m worth of its stock directly from Henkel, the companies said.

 

Ecolab planned to utilise existing cash balances, commercial paper and committed bank lines to fund the purchase, it said.

 

“We believe our $300m purchase is a sound and timely investment for Ecolab and its shareholders,” said Ecolab CEO Douglas Baker.

 

Henkel’s divestment of the Ecolab stake follows its acquisition of National Starch’s adhesives and electronic materials businesses from Akzo Nobel, which closed in April.

 

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($1 =  €0.78)

By: Stefan Baumgarten
+1 713 525 2653

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