Henkel Seeks Partner for Cognis

Henkel has appointed an investment bank to support Henkel and Cognis in a structured process in order to find a suitable partner for Cognis, the company announced on Nov. 14. The partner could be an industrial partner or a private equity investor. All options will be evaluated, including the sale of a majority stake in Cognis or the company as a whole. In a statement, Henkel said the decision on Cognis will take into consideration that the future partner will guarantee the best possible development of Cognis and thus open up challenging growth perspectives for its employees.

For the nine months ended Sept. 30, Henkel reported sales rose 12.1% to $8.1 billion. Operating profit (EBIT) increased 11.3% to $605 million. The company noted that both Cognis and the industrial and institutional hygiene/surface technologies sectors both performed particularly well, with each registering double-digit growth rates.

The cosmetics/toiletries business sector increased sales by 10.7% to $1.29 billion. Business performance was said to be particularly positive in Germany, Europe, Latin America and Asia/Australia. In China, measures have been introduced to improve profitability. Business in Russia has developed well following the economic crisis. Operating profit increased by 9.0% to $81.7 million.

The detergents/household cleaners business sector increased sales by 9.4% to $1.8 billion. Operating profit improved by 2.2% to $135.8 million. Throughout Europe, sales were increased and additional market share gains were achieved. Significant sales improvements were achieved in new markets, particularly Egypt, Lebanon, India, Israel and Russia. The emerging countries already account for more than 20% of the overall heavy-duty detergents business. In China, the trend is improving. In the U.S., business performance of the Dial-Henkel joint venture remained below expectations.

The industrial and institutional hygiene/surface technologies business sector achieved an increase in sales of 11.1% to $1.2 billion. Operating profit improved by 13.7% to $104 million due to the good market development and the launch of new products.

Industrial and institutional hygiene (the Henkel-Ecolab joint venture) improved sales by 7.1% to $595 million.