Germany-based Henkel has signed an agreement with Colgate-Palmolive to acquire its entire range of laundry detergents and pre-wash brands in Australia and New Zealand.
With the acquisition of powder and liquid detergents as well as pre-wash brands including Cold Power, Dynamo, Fab, Sard, Kindness, Spree, and Hurricane, Henkel will become one of the largest players in the detergents category in ANZ.
In total, the brands to be acquired generated sales of about €110 million in the fiscal year 2014.
“This agreement is another step in the execution of our global strategy to selectively invest in attractive country category positions,” said Bruno Piacenza, executive VP Henkel laundry and homecare.
“With this transaction we will cover an attractive regional white spot in our core category laundry care with successful brands. The acquired business also provides a platform to further expand our laundry and homecare business by leveraging our broad portfolio of leading brands and innovations in these markets,” Piacenza said.
The purchase price amounts to €220 million and will be financed in cash. The transaction will be accretive to earnings upon closing. The closing of the transaction is still subject to regulatory approvals and expected to take place in the third quarter of 2015.
Henkel is already present in Australia and NZ with its beauty care and adhesive technologies businesses and international brands including Schwarzkopf and Loctite.
