Henkel signs agreement for sale of Cognis

14-Sep-2001

Henkel KGaA has agreed to sell its chemical division Cognis to a consortium of financial investors comprising of Schroder Ventures and Goldman Sachs Capital Partners. The transaction is based on an enterprise value of 2.6 billion euro. Henkel has succeeded in finding purchasers who are able to support the continued successful development of Cognis and thereby offer the Cognis employees a promising perspective.

The definite purchase agreement was signed by the parties on September 12, 2001. Closing is planned for end of November 2001. Due to the current uncertain conditions in the financial markets arising from the tragic events in the United States, Henkel has granted to the investors the absolute right to withdraw from the contract within two months.The agreement is subject to customary closing conditions, including relevant regulatory approvals.The proceeds from the sale of Cognis will increase Henkel's debt capacity substantially and will be used for the further development of the core businesses.

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