Henkel takes further step towards acquisition of
National Starch businesses
Agreement reached on transaction value.
Dsseldorf, Germany/Gulph Mills, Penn., August 6, 2007 Henkel KGaA and Akzo
Nobel N.V., Arnhem, The Netherlands, have reached an agreement on the value of a
back-to-back transaction on August 6, 2007. The transaction envisages that Henkel will
acquire the adhesives and electronic materials businesses of National Starch and
Chemical Company, Bridgewater, N.J., USA, a subsidiary company of ICI plc, London,
UK. The transaction value of these businesses is 2.7 billion GBP (close to 4 billion eu-
ros). Signing of the agreement on the back-to-back transaction is still pending. It is in-
tended to execute the agreement, which is still subject to the approval of the Henkel
Shareholders' Committee, immediately prior to the announcement of a formal offer by
Akzo Nobel for ICI. The transaction is conditional on the successful completion of the
takeover of ICI by Akzo Nobel.
With this acquisition, Henkel would strengthen its existing leading position in the global
adhesives market, particularly in the industrial business. The National Starch businesses
to be acquired realized sales of about 1.26 billion GBP (about 1.85 billion euros) in 2006
and would increase sales of the Adhesives Technologies business sector to approxi-
mately 7.3 billion euros - around half the total sales of Henkel.
Henkel Corporate Communications
"With this agreement, we have taken a major step towards the successful conclusion of
the planned acquisition. We consider the agreed transaction value to be a fair price,
since the new businesses offer exceptional complementarity with our portfolio," says Ul-
rich Lehner, Chairman of the Management Board of Henkel. "Moreover, we expect sig-
nificant synergies and a substantial improvement of our growth and profit prospects to
arise from the planned combination."
The businesses to be acquired from National Star