Dial/Henkel Joint Venture Changes

Henkel KGaA, Dusseldorf, and The Dial Corporation, Scottsdale, Arizona, USA, today announced they have modified their joint venture agreements in the United States and Mexico. Henkel and Dial will continue to own a limited U.S. joint venture equally; however, the only business to be conducted by the joint venture going forward will be the Custom Cleaner home drycleaning business. Dial will continue to market, sell and distribute the Custom Cleaner products on behalf of the U.S. joint venture. Dial and Henkel have also agreed to terminate the license of the Purex trademark to both the U.S. and Mexico joint ventures.

In addition, Henkel has purchased Dial’s interest in the Mexico joint venture for $18.9 million.

Klaus Morwind, executive vice president detergents/household cleaners of Henkel KGaA, said: “The business development of our joint venture with Dial in the U.S. came out significantly below our expectations. The introduction of Purex Advanced was not successful and therefore the Dial/Henkel joint venture needed a refocus. Ending our marketing efforts for Purex Advanced will allow us now to better focus on selective growth markets in the Americas like Mexico.”