11/13/2008, Düsseldorf / Germany

 

Henkel announces successful public offering of its shares in Ecolab

Successful public offering of Ecolab stake

Henkel has - as a result of the public offering of its stake in Ecolab Inc., St. Paul/Minnesota, USA, and the share buy back by Ecolab - agreed to sell in total approximately 67.1 million shares of Ecolab common stock. Henkel will receive aggregate proceeds of approximately 2.0 billion US dollars (about 1.6 billion euros) before taxes and expenses.

In addition, the underwriters in the offering have an over-allotment option to purchase a total of approximately 5.6 million additional shares of common stock from Henkel. If the shares in the over-allotment option are sold, Henkel will receive additional aggregate proceeds of approximately 170 million US dollars (about 135 million euros) before taxes and expenses.

Henkel expects to use the proceeds from these sales to reduce its outstanding debt.
“The divestiture of our stake in Ecolab enables Henkel to further concentrate on our operational core business,” says Lothar Steinebach, Henkel’s Chief Financial Officer.  “In addition, the divestiture is a major contribution to maintaining our ‘A’ rating.”

Henkel has held an investment in Ecolab since 1989. In 1991, Ecolab and Henkel formed a joint venture in Europe, combining each company’s European commercial cleaning and sanitizing operations. Also at that time, Henkel sold its remaining worldwide commercial cleaning and sanitizing businesses to Ecolab. In 2001, Ecolab purchased Henkel’s interest in the joint venture for cash. In February 2008, Henkel announced its intention to sell some or all of its Ecolab shares.

 

A copy of the prospectus relating to this offering may be obtained for free by visiting EDGAR on the SEC Web site at www.sec.gov. Alternatively, Ecolab Inc., any underwriter or any dealer participating in the offering will arrange to send you the prospectus if you request it by calling toll-free 1-800-221-1037, 1-866-471-2526 or 1-866-500-5408.

This release shall not constitute an offer to sell or the solicitation of an offer to buy nor shall there be any sale of the shares of common stock in Ecolab Inc. in any state in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such state.

This information contains forward-looking statements which are based on the current estimates and assumptions made by the corporate management of Henkel AG & Co. KGaA. Forward-looking statements are characterized by the use of words such as expect, intend, plan, predict, assume, believe, estimate, anticipate, etc. Such statements are not to be understood as in any way guaranteeing that those expectations will turn out to be accurate. Future performance and the results actually achieved by Henkel AG & Co. KGaA and its affiliated companies depend on a number of risks and uncertainties and may therefore differ materially from the forward-looking statements. Many of these factors are outside Henkel's control and cannot be accurately estimated in advance, such as the future economic environment and the actions of competitors and others involved in the marketplace. Henkel neither plans nor undertakes to update any forward-looking statements.