Germany-based Henkel has made a binding offer to purchase US’ Darex Packaging Technologies from GCP Applied Technologies for $1.05bn.
To meet the requirements of the cash-and-debt-free deal, GCP will begin a consultation process with the relevant works councils and labour unions.
Once completed, the company expects to enter a definitive purchase and sale agreement that will be subject to customary closing conditions, including regulatory approvals.
Henkel CEO Hans Van Bylen said: “The intended transaction is in line with our strategy to strengthen our portfolio through targeted acquisitions and would reinforce the position of our Adhesive Technologies business as a global market and technology leader.”
Darex currently provides high-performance sealants and coatings for the metal packaging industry.
With around 700 employees and 20 sites in 19 countries, the company also provides beverage, food or aerosol cans.
Henkel adhesive technologies executive vice-president Jan-Dirk Auris said: “We are excited about the opportunity to add the high-performance Darex business to our existing Adhesives Technologies portfolio.
“We are glad that we are now entering into exclusive negotiations about a possible acquisition. Darex’s experience in developing innovative, high-performance sealants and coatings will underpin our commitment to provide our global customers with best-in-class solutions.”
The company also noted that Darex will expand its existing portfolio to serve the metal packing industry and help enhance Henkel's position in the non-cyclical business.