Henkel Announces Successful Public Offering of Its Shares in Ecolab

Henkel has agreed to sell in total approximately 67.1 million shares of Ecolab common stock, as a result of the public offering of its stake in Ecolab Inc., St. Paul, Minnesota, and the share buy back by Ecolab. Henkel will receive aggregate proceeds of approximately $2 billion (about 1.6 billion euros) before taxes and expenses.

In addition, the underwriters in the offering have an over-allotment option to purchase a total of approximately 5.6 million additional shares of common stock from Henkel. If the shares in the over-allotment option are sold, Henkel will receive additional aggregate proceeds of approximately $170 million (about 135 million euros) before taxes and expenses.

Henkel expects to use the proceeds from these sales to reduce its outstanding debt. "The divestiture of our stake in Ecolab enables Henkel to further concentrate on our operational core business," says Lothar Steinebach, Henkel's Chief Financial Officer. "In addition, the divestiture is a major contribution to maintaining our 'A' rating."

Henkel has held an investment in Ecolab since 1989. In 1991, Ecolab and Henkel formed a joint venture in Europe, combining each company's European commercial cleaning and sanitizing operations. Also at that time, Henkel sold its remaining worldwide commercial cleaning and sanitizing businesses to Ecolab. In 2001, Ecolab purchased Henkel's interest in the joint venture for cash. In February 2008, Henkel announced its intention to sell some or all of its Ecolab shares.

Henkel markets a wide range of well-known consumer and industrial brands in North America, including Dial(R) soap, Purex(R) laundry detergent, Right Guard(R) antiperspirants, got2b(R) hair gels, and Loctite(R) adhesives.

SOURCE Henkel