Henkel to buy Sun Products Corp. for $3.6 billion
Vestar Capital Partners, New York, said Henkel Consumer Goods Inc., a subsidiary of German company Henkel AG & Co. KGaA (Henkel), signed a definitive agreement to acquire The Sun Products Corp., a Vestar portfolio company. The transaction is valued at $3.6 billion.
Sun Products, based in Wilton, Conn., has a portfolio of laundry and household brands such as all, Sun, Wisk, Snuggle and Sunlight. The company also develops and manufactures private brand laundry and dish care products for retailers in North America, Vestar noted. In fiscal 2015, the company generated sales of approximately $1.6 billion in the United States and Canada. Sun Products employs approximately 2,000 people.
“This transaction is a major strategic move for Henkel," said Hans Van Bylen, Henkel CEO. "North America is one of the most important markets for us worldwide. With the acquisition of Sun Products we will improve our position in the USA, the world’s largest laundry market.”
With the acquisition, Henkel will advance to the number-two position in the laundry care market in North America, Vestar said.
“Joining forces with Henkel is the ideal step following our multi-year journey of transformation into a competitive and profitable industry leader,” said Jeffrey P. Ansell, Sun Products' chairman, president and CEO. “The collaboration with Vestar has been outstanding, and together with our talented team we’ve developed a winning business model that includes strong national and retailer brands, fueled by innovation leadership, a streamlined cost structure and manufacturing expertise to deliver consistently high-quality products. Moving forward with Henkel, we will bring even more exciting innovation into the North America market, delighting consumers, customers and our employees with more career-broadening opportunities.”
The closing of the transaction is subject to customary regulatory approvals and other customary closing conditions, Vestar noted. Morgan Stanley & Co. LLC acted as financial advisor and Kirkland & Ellis LLP acted as legal advisor to Sun Products.