Germany's Henkel Buying Dial
German chemical and consumer products conglomerate Henkel agreed to buy U.S. soap giant Dial (DL) for $2.9 billion, or $28.75 a share, in cash.
The news sent Dial, based on Scottsdale, Ariz., up $1.11, or 4.3%, to $26.99 in thin Instinet premarket trading.
Henkel, through a vehicle known as HC Investments, already owns about 25% of the outstanding stock of Clorox (CLX) and a big stake in Ecolab (ECL), both of which could be sold in part or whole to help finance the transaction, the company said. No appreciable premarket volume was occurring in either company's shares Monday.
Henkel said the deal will add to earnings immediately before goodwill amortization. Dial, which sells laundry products, air fresheners and food in addition to hand soap, did about $1.3 billion in net sales last year and earned $220 million before interest and taxes.Dial said the purchase was part of a three-year-old strategy to make the company "part of a larger, global enterprise." Herb Baum will continue to be chief executive of the Dial unit for two years and other top-level management is expected to stay. The deal must be approved by Dial shareholders and regulators and is expected to close by April.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV