Henkel Selling Cognis

DUSSELDORF--Henkel KGaA signed a definitive purchase agreement on Sept. 12 to sell its Cognis division to Schroder Ventures and Goldman Sachs Capital Partners. According to Henkel, the transaction is based on an enterprise value of 2.6 billion euro, and is expected to close by the end of November.

Henkel "carved out" the Cognis business in January 2000, making it an independent legal entity. Cognis has three divisions focused in the specialty chemicals industry, with 9,100 employees in 50 countries; Cognis generated 23 percent of total Henkel sales in 2000. In November last year, Henkel announced that it had retained an investment bank to locate a partner for Cognis.

Cognis Nutrition & Health (www.cognishealth.com) supplies products including natural-source vitamin E, natural beta-carotene and other antioxidants. According to Paul Allen, Cognis' vice president, the company has been in touch with its customers regarding the sale. "It's business as usual regarding [the customers'] Cognis contacts and product supply," he said. "We are confident that this change in ownership and the establishment of Cognis as a truly autonomous company will be positive for Cognis and our customers."