Henkel Acquires Sun Products for $3.6B

German homecare products manufacturer Henkel is acquiring Sun Products Corp., manufacturer and marketer of all Sun, Wisk, Snuggle and Sunlight brands, from a fund of Vestar Capital Partners, in transaction valued at $3.6 billion, including debt.

The acquisition will vault Henkel to the No. 2 position in the laundry care market in North America.

“This transaction is a major strategic move for Henkel," said Henkel CEO Hans Van Bylen. "North America is one of the most important markets for us worldwide. With the acquisition of Sun Products we will improve our position in the USA, the world’s largest laundry market,”

In fiscal 2015, Wilton, Conn.-based Sun Products Corp., which employs approximately 2,000 people, generated sales of approximately $1.6 billion in the U.S. and Canada.

“The partnership between Jeff Ansell and the Sun Products leadership and the Vestar Consumer team has been highly successful for our firm and our investors,” said Dan O’Connell, CEO and founder of Vestar Capital Partners. “We are proud of the company’s many achievements under our ownership, including improved profitability, healthier core brands and strengthened operations and believe the combination with Henkel's North America business will create a strong platform for future success.”

Sun Products chairman, president and CEO Jeffrey P. Ansell said, “Joining forces with Henkel is the ideal step following our multi-year journey of transformation into a competitive and profitable industry leader. “The collaboration with Vestar has been outstanding, and together with our talented team we’ve developed a winning business model that includes strong national and retailer brands, fueled by innovation leadership, a streamlined cost structure and manufacturing expertise to deliver consistently high-quality products. Moving forward with Henkel, we will bring even more exciting innovation into the North America market, delighting consumers, customers and our employees with more career-broadening opportunities.”

The closing of the transaction is subject to customary regulatory approvals and other customary closing conditions.

Henkel operates worldwide with leading brands and technologies in three business units: laundry & home care, beauty care and adhesive technologies. Henkel holds globally leading market positions, both in the consumer and in the industrial businesses, with well-known brands such as Persil, Schwarzkopf and Loctite.

With annual net sales of approximately $1.6 billion, Sun Products, whose portfolio includes Snuggle, Wisk, Sun, Surf and Sunlight Sun Products, is also a private label supplier for many retailers' laundry and dish products in North America.

Vestar Capital Partners is a leading U.S. middle-market private equity firm currently managing approximately $5 billion in capital. Specializing in management buyouts and growth capital investments, Vestar invests and collaborates with incumbent management teams and private owners to build long-term enterprise value, with a focus on consumer, healthcare, and business and financial services.

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