Henkel Acquires Laundry Care Company Sun Products
Germany: Henkel, one of the global
leaders in laundry & homecare technologies in Germany, has acquired the Sun
Products Corp using funds of Vestar Capital Partners in United States. The deal
of USD3.6 billion also included the financial debts. Through this debt financed
acquisition, all the laundry detergents and fabric conditioners of Sun Products
Corp will be added to Henkel’s product portfolio. This acquisition is expected
to make Henkel the second leading laundry care manufacturer in North America
region after Procter & Gamble, followed by Church & Dwight. Earlier,
the shares of Henkel were lower by 0.6% at 1045 GMT. With the acquisition of
Sun Product’s business, having sales of around 1.4 billion euros in Canada and
US, the sales of Henkel’s laundry care segment have raised to around one third
from 13 percent.
TechSci Research depicts that
this acquisition would strengthen the market position of Henkel’s laundry and
home care segment in the country. Also, this deal has benefited Sun Products
Corp sales to rise by 2.3 times, thereby providing lucrative opportunities for
Henkel’s business.
According to the upcoming report by TechSci Research, “India Textile Chemicals Market by Product Type (Auxiliaries and
Colorants), By Application (Apparel, Home Furnishing, Technical Textile), By
Region, Competition Forecast & Opportunities, 2011-2021”, the
textile chemicals market in India is projected to exhibit strong growth over
the next five years. The main driver for India textile chemicals market is the
strong growth in technical textile market of India. The ability of technical
textiles to impart technical performance and functional properties rather than
aesthetic value to the textile product is increasing their demand in India
textile market.