Henkel recently announced it has entered into exclusive negotiations with GCP Applied Technologies to acquire its global Darex Packaging Technologies business for $1.05 billion on a cash and debt free basis.

Henkel has reportedly submitted a binding offer for the business. Based in Cambridge, Mass., Darex supplies high-performance sealants and coatings for the metal packaging industry worldwide. In fiscal 2016, Darex Packaging Technologies reportedly generated sales of around $300 million. The company has about 700 employees and 20 sites in 19 countries.

“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,” said Hans Van Bylen, Henkel CEO.

“We are excited about the opportunity to add the high-performance Darex business to our existing Adhesives Technologies portfolio,” said Jan-Dirk Auris, executive vice president, Adhesive Technologies. “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. This business is the perfect fit for our existing portfolio serving the metal packing industry and would therefore strengthen our position in this highly attractive and non-cyclical business. We would be happy to welcome to Henkel such a successful and experienced strong team with long-standing business expertise.”

For more information, visit www.gcpat.com or www.henkel.com.