Henkel Announces Successful Public Offering of Its Shares in Ecolab
DUSSELDORF, Germany and ROCKY HILL, Conn., Nov. 13 -- 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 in North America
Henkel markets a wide range of well-known consumer and industrial brands in North America, including Dial® soap, Purex® laundry detergent, Right Guard® antiperspirants, got2b® hair gels, and Loctite® adhesives. Visit www.henkelna.com for more information.
A copy of the prospectus relating to this offering may be obtained for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, Ecolab Inc., any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-221-1037, 1-866-471-2526 or 1-866-500-5408.
Press Contacts:
Cindy Demers (North America)
Phone: 480-754-4090
cindy.demers@us.henkel.com
Lars Witteck (International)
Phone: +49-211-797-2606
Fax: +49-211-798-9208
press@henkel.com
SOURCE: Henkel
Web site: www.henkel.us
