Loctite to acquire Dexter speciality Polymers business

Loctite to acquire Dexter speciality Polymers business

Keywords Loctite, Dexter, Acquisition

Loctite Corporation, a US affiliate of German-based Henkel KGaA, has entered into a definitive agreement with Dexter Corporation to purchase the company's California-based Electronic Materials, Adhesives, and Polymer Systems business for $400 million. In 1999, Dexter's Electronic Materials, Adhesives, and Polymer Systems business reported net sales of $236 million. The business comprises speciality products for the assembly and manufacture of electronic components,as well as adhesives for specific applications found in aerospace, automotive,recreational, and other industrial markets. Dexter Electronic Materials is a leading broad-based, global manufacturer of speciality materials for the electronics industry, including HYSOL epoxy molding compounds, coating powders,high performance liquid encapsulants, adhesives, and die attach products for the protection, packaging, and assembly of semiconductor, electronic, and electrical components. There is very little overlap between the products offered by Dexter Electronic Materials and Loctite Corporation.

According to Stephen Merkel, President of Loctite Americas, "This acquisition will result in a single company with an exceptional focus on the electronics marketplace. By combining the strengths of two technically diverse organisations, we will offer electronics customers unequalled technology,service, global presence, and depth of product line. Dexter is a highly respected key materials supplier with an unequalled image and market presence. The Loctite/Dexter partnership will offer the financial strength of a multibillion dollar chemical company with the flexibility of a highly responsive organisation dedicated to the electronics industry."