D¿SELDORF, Germany -- Henkel KGaA has agreed to sell its chemical division, Cognis, to a consortium of financial investors comprised of Schroder Ventures, London, and Goldman Sachs Capital Partners, New York. The transaction is based on an enterprise value of 2.6 billion euros, or $2.36 billion.
The parties signed the purchase agreement on September 12, 2001. Due to the current uncertain conditions in the financial markets arising from the tragic events in the United States, Henkel has granted 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.