Sources: GCP Applied Technologies Inc., Cambridge, Mass.; CP staff
A binding, $1 billion offer from Germany’s Henkel AG & Co. for GCP Applied Technologies’ Darex Packaging business positions the seller to pursue growth opportunities in concrete admixtures and other construction or building materials. “The transaction will allow us to enhance our focus and provide a strong balance sheet for internal investment and bolt-on acquisitions necessary to provide new products, technologies, and solutions that offer layers-of-value for our customers,” says GCP CEO Gregory Poling.
Splitting from heritage entity W.R. Grace & Co. in February 2016, GCP launched as a combination of Grace Construction Products and Darex Packaging Technologies—the latter billed as a stabilizing factor alongside a sister operation exposed to the cyclical construction market. Darex now becomes a complementary fit to the Henkel Adhesives Technologies portfolio, and also brings sealing and coating products extending the company’s metal packaging offerings.
Düsseldorf-based Henkel has upward of 50,000 employees in 125 countries, operating in the adhesives, laundry and home care, plus beauty care businesses. In connection with the Darex offer, GCP will confer as required with labor groups, then effect a definitive purchase and sale agreement with Henkel. The proposed transaction is subject to customary closing conditions, including regulatory approvals, with projected mid-2017 closing.
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