Cognis chemicals sold to TFL parent group
As part of its ongoing strategy to concentrate on detergents, glues and cosmetics business, Dusseldorf-based Henkel has sold its Cognis specialty chemicals arm for Eur2.6 billion ($2.4 billion). The business has been sold to Goldman Sachs and Schroder Ventures, the parent organisations to TFL (Together for Leather) who have been granted the option of pulling out of the deal within the first two months. Henkel has said the clause was built in following the terror attack in the U.S. and the "related uncertainties vis-à-vis financial markets."
Incorporating a specialty leather chemicals division, Cognis turned in an operating profit of Eur220 million on sales of Eur3.2 billion in 2000, accounting for 23 percent of total Henkel Group sales. In the first half-year of 2001, Cognis achieved an increase in sales of 4 percent to Eur1.5 billion. Operating profit rose by 3.6 percent to Eur116 million. Henkel said it is looking to complete the transaction by the end of November.
