Henkel to buy Sovereign; sells clorox stake.(top of the week)(Henkel Corp.)(Sovereign Specialty Chemicals Inc.)

Chemical Week, October, 2004 by Walsh, Kerri

Henkel plans to buy Sovereign Specialty Chemicals (Chicago) for $575 million, including debt and liabilities, the companies say. Henkel says the purchase will strengthen its market share in the U.S. adhesives and sealants industry. Both companies have agreed to the offer, and the deal is expected to close by the end of this year. A consortium of investors led by AEA Investors (New York) owns 75% of Sovereign. A group of other investors and company management own the remaining 25%, Sovereign says. UBS Investment Bank (New York) and J.P. Morgan (New York) acted as financial advisers to Sovereign.

Sovereign reported sales of $391 million for the last 12 months ending June 30. About 90% of those sales are generated in the U.S., Henkel says. Henkel does not break...

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