Henkel entering U.S. skin, hair care mass market with $93 mil. Dep buy.
This article was originally published in The Rose Sheet
Executive Summary
HENKEL's $93 MIL. DEP ACQUISITION IS 14.5 TIMES OPERATING PROFIT of $6.4 mil. in FY 1997 (ended July 31). By comparison, Carson's recent Johnson Products buy was for 9.1 times 1997 operating profit ("The Rose Sheet" June 22, p. 1). Under an agreement reached July 14, Dusseldorf, Germany-based Henkel will pay a 31% premium to Dep Corp.'s stock price at $5.25 a share for 6.9 mil. outstanding shares of common stock based on Dep's July 13 closing price of $4. The Berglass family owns approximately one-third of Dep common stock, worth more than $12 mil. at the $5.25 per share price. During a second phase of the merger, Henkel will acquire any shares not purchased in the first round for the same price. The deal is expected to commence July 20 and close within the quarter.
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