FTC Sues to Block Henkel-Liquid Nails Acquisition, Citing Antitrust Concerns
Image courtesy of Henkel.
In a press release published yesterday, the U.S. Federal Trade Commission (FTC) announced it has sued to block Henkel AG & Co. KGaA, owner and manufacturer of the adhesive brand Loctite, from purchasing Liquid Nails.
Within the official statement, the Commission stated that Liquid Nails is Loctite’s primary competitor and that a merger would “eliminate fierce competition between Loctite and Liquid Nails, leading to higher prices, lower quality, and reduced innovation, all of which would be detrimental to American consumers.”
The FTC revealed in the news release a proposed deal between Henkel and private equity firm American Industrial Partners, current owner of Liquid Nails, for the purchase of the brand for $725 million. According to the FTC's complaint, the deal “would combine the two biggest brands – by far—of construction adhesives sold at retailers like The Home Depot, Lowe’s, and Ace Hardware.” News of the acquisition appears to have been confidential until the FTC announced the action to block the deal.
American Industrial Partners acquired Liquid Nails as part of its purchase of the U.S. and Canadian architectural coatings business of PPG in December 2024.
As of this reporting, Henkel and American Industrial Partners had not yet issued a public, official statement or response to the lawsuit filed by the FTC.
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