Henkel to acquire GCP’s Darex Packaging Technologies business
GCP Applied Technologies has received a binding offer from Henkel to acquire GCP’s global Darex Packaging Technologies business for approximately $1.05 billion.
The sale of Darex would position GCP to focus on the growth opportunities in the construction and building materials markets. Darex’s sealing and coating products will extend Henkel’s offering in the metal packaging industry.
“We are repositioning GCP for higher growth through differentiated technology and strong market positions targeting the global construction markets,” said Gregory Poling, president and chief executive at GCP Technologies.
“The transaction will allow us to enhance our focus and will 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.”
GCP is creating new product categories in the ready mix concrete industry with its Verifi in-transit concrete management system; and has launched new Silcor liquid waterproofing and Perm-A-Barrier weather barrier products that improve building performance and reduce labor costs.
In connection with Henkel’s binding offer, GCP will begin a consultation process with the relevant works councils and labour unions. Upon completion of this process, GCP expects to enter into a definitive purchase and sale agreement in respect of the proposed sale. The proposed transaction will also be subject to customary closing conditions, including regulatory approvals, and is expected to close in the middle of 2017.