Henkel $3.6 billion acquisition of The Sun Products Corporation

Overview:

• German consumer products group Henkel has reached an agreement to acquire US laundry care product manufacturer The Sun Products Corporation for $3.6 billion from Vestar Capital Partners. 
• The deal is being debt financed by Deutsche Bank, JPMorgan and BNP Paribas.
• For Vestar Capital Partners, which invested around $450 million in The Sun Products Corp, the sale price represents a significant return. 
• Henkel, which owns Persil among other brands, has significantly enhanced its US market share in the laundry care space, becoming the second largest supplier in North America behind Procter & Gamble by adding new products including detergents All and Sun and fabric conditioner Snuggle to its portfolio. 
• Perella Weinberg Partners and Credit Suisse advised Henkel on financials.
• Morgan Stanley represented Sun Products.
• Cleary Gottlieb Steen & Hamilton advised Henkel on the corporate and M&A aspects of the transaction.
• Kirkland & Ellis acted for Sun Products. 
• King & Spalding (Werner Meier) advised the German company on the financing. 
• Clifford Chance (Bettina Steinhauer, Julia Klingen) negotiated for the banks.

Ben Naylor - Editor EMEA