This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Henkel Wipes Up Spotless for $1.3B

Stocks in this article: JPM

NEW YORK (The Deal) -- German household products maker Henkel Thursday. June 5, announced its second acquisition this week, agreeing to buy French household cleaner and insect control company Spotless Group from London buyout shop BC Partners.

Henkel, of Dusseldorf, said it would pay 940 million ($1.3 billion) including debt, which it will finance out of existing cash.

The German maker of Loctite adhesives and Right Guard deodorant is bulking up in the U.S. and Europe with the help of financial investors. On Monday it agreed to buy three professional haircare brands from San Francisco's TSG Consumer Partners for 270 million.

Henkel CEO Kasper Rorsted two years ago promised to boost sales to 20 billion by 2016, the key driver behind the acquisitions. Last year the company's sales stagnated at 16.4 billion.

Spotless, based in the Paris suburb of Neuilly-sur-Seine, had 2013 sales of 280 million. It employs 470. The deal is expected to close in the first quarter of 2015. The target gets about half of its revenue from cleaning products and BC has overseen a number of acquisitions, particularly in insect control. Henkel shares were up just under 1%, or 0.65, at 85.89 in mid-day Frankfurt trading.

"The acquisition of Spotless Group comes at a pretty valuation but that's possibly explained by the high margins. Without including synergies, the purchase should add 1% to earnings per share in 2015," wrote Commerzbank analyst Andreas Riemann in a note. He has a buy rating on Henkel.

BC Partners bought Spotless from AXA Private Equity in 2010 for 600 million. The investor made two times its money in the four years it held Spotless, according to a source who refused to divulge how much equity BC put in the company.

Two years ago Spotless bought four brands from L'Oreal: Dr. Optic glasses cleaner, Zensect insect control products and the Croc'Odor and Iba air fresheners. Last year it picked up the K2R spot remover line from Switzerland's Hedoga AG.

"The company has leading market positions in established European markets such as France, Italy, Spain, the U.K. and the Benelux countries," Henkel said.

JPMorgan Chase (JPM) and Rothschild acted as financial advisers to BC Partners.

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

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.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

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.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs