BASF, Henkel Agree on Deal


In a move to strengthen its construction chemicals portfolio, the world’s largest chemical company, BASF, plans to acquire Henkel’s professional Western European flooring, tiling and waterproofing business.

Terms of the sale, announced Wednesday (Sept. 14), were not disclosed.

The transaction is subject to the approval of relevant antitrust bodies and is expected to close by the end of 2016.

Products, Brands Included

The planned transaction includes Henkel’s flooring business sold under the Thomsit brand globally, according to BASF. Also part of the transaction is Henkel’s flooring, tiling and waterproofing business in Western Europe, currently sold by specialized retailers or under the Ceresit brand.

Per the agreement, BASF will use the Ceresit trademark for the Western European business in the categories of tiling and waterproofing.

BASF intends to integrate the acquired business into PCI Group, a wholly-owned subsidiary of BASF and part of its Construction Chemicals division. PCI Group has a leading position in the German market for tile fixing systems, according to the company.

Production Sites

The proposed transaction also includes a temporary lease of Henkel’s production site in Unna, Germany, where the respective products are being produced.

BASF says it will operate the Unna site for a period of two to three years and will then continue the business at existing PCI production sites, mainly in Hamm, Germany, which is located near Unna.

BASF intends to offer Henkel’s employees mid- or long-term employment perspectives within BASF Group wherever possible.

Company Statements

“Henkel’s building material business will remain an integral part of our portfolio and we will continue to develop it in all other regions,” said Corporate Senior Vice President Hermann Deitzer, who is heading Henkel’s Consumer, Craftsmen and Building Business. “The Ceresit brand will continue to be the strategic platform for Henkel’s global building material business.

“However, in Western Europe we do not see a long-term perspective for this business in its current setup as well as for our related activities in Unna. Thus we are pleased to have reached this agreement with BASF,” Deitzer added.

Herman Deitzer

Corporate Senior Vice President Hermann Deitzer notes that "Henkel’s building material business will remain an integral part of our portfolio and we will continue to develop it in all other regions."

Ralf Spettmann, president of BASF’s Construction Chemicals division, added that the deal “demonstrates [the company’s] strong commitment to expanding [its] Construction Chemicals product portfolio.”

About the Companies

Henkel was founded in 1876. Based in Düsseldorf, Germany, the multinational currently operates three business units: laundry and home care, beauty care, and adhesive technologies. The company recently closed a $3.6 billion deal to acquire Connecticut-based The Sun Products Corp.

BASF, headquartered in Ludwigshafen, Germany, is currently the largest chemical producer in the world serving a variety of industries, including paints and coatings.


Tagged categories: Acquisitions; BASF; Coatings Technology; Europe; Flooring system; Henkel Corp; Mergers; Tile; Waterproofing

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