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Vestar Capital Partners to sell Sun Products to Henkel in USD3.6bn transaction

Henkel Consumer Goods is to acquire The Sun Products Corporation (Sun Products), a Vestar Capital Partners V portfolio company. The transaction is valued at USD3.6 billion.

Sun Products, based in Connecticut, has a portfolio of iconic laundry and household brands, such as all, Sun, Wisk, Snuggle and Sunlight. The company also develops and manufactures laundry and dish care brands for leading retailers in North America. In fiscal 2015, the company generated sales of approximately USD1.6 billion in the US and Canada. Sun Products employs approximately 2,000 people.

“This transaction is a major strategic move for Henkel. North America is one of the most important markets for us worldwide. With the acquisition of Sun Products we will improve our position in the USA, the world’s largest laundry market,” says Henkel Chief Executive Officer Hans Van Bylen. With the acquisition, Henkel will advance to the number-two position in the laundry care market in North America.

“The partnership between Jeff Ansell and the Sun Products leadership and the Vestar Consumer team has been highly successful for our firm and our investors,” says Dan O’Connell, chief executive officer and founder of Vestar Capital Partners. “We are proud of the company’s many achievements under our ownership, including improved profitability, healthier core brands and strengthened operations and believe the combination with Henkel's North America business will create a strong platform for future success.”

“Joining forces with Henkel is the ideal step following our multi-year journey of transformation into a competitive and profitable industry leader,” says Jeffrey P Ansell, Sun Products chairman, president and chief executive officer. “The collaboration with Vestar has been outstanding, and together with our talented team we’ve developed a winning business model that includes strong national and retailer brands, fueled by innovation leadership, a streamlined cost structure and manufacturing expertise to deliver consistently high-quality products. Moving forward with Henkel, we will bring even more exciting innovation into the North America market, delighting consumers, customers and our employees with more career-broadening opportunities.”

The closing of the transaction is subject to customary regulatory approvals and other customary closing conditions.

Morgan Stanley & Co acted as financial advisor and Kirkland & Ellis LLP acted as legal advisor to Sun Products.

Perella Weinberg Partners acted as lead financial adviser to Henkel.

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