Bostik May Be Adhesives M&A Opportunity for Henkel: Bernstein
2014-09-10 13:47:46.791 GMT
By Chiara Remondini
Sept. 10 (Bloomberg) -- Bernstein says acquisition of
Bostik at right price would be “big positive” for Henkel, be
very well received by investors, according to note.
* Bernstein (outperform) notes Bostik attractive as Henkel
already world’s largest adhesives co., has indicated
willingness to undertake major M&A
* Estimates Bostik is 4th player in global adhesives market
with share of ~3% (2013 rev. EU1.5b; estimates 2013 Ebit of
EU225m based on avg. of adhesives peer Ebit margins of ~15%)
* Bernstein sees significant possible positives from deal:
* Increase size of adhesives business by 19%, says its
view on Adhesives industry is “fundamentally positive”
* Complementary product portfolio, significant synergies
* Deal may be financially very attractive, re-leverage
Henkel’s balance sheet: price of EU3b with up to EU2b of
debt would still result in net debt to Ebitda of 0.7x
* Earnings accretive, says EPS ests. may “easily increase by
mid-to-high single-digits” in deal
* Notes as possible “limited” negatives: higher exposure to
Adhesives away from HPC, enhancing cyclical risk; antitrust
issues; Henkel may overpay if there is interest for business
* NOTE yday: Total considering sale of Bostik adhesives unit:
Reuters
* NOTE July 3: Henkel still had ~EU5b for deals after June
spree
* NOTE: Henkel generated ~50% of 2013 rev. from its Adhesives
Technologies business: Bloomberg data; further details on
business here
For Related News and Information:
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To contact the reporter on this story:
Chiara Remondini in Milan at +39-02-8064-4241 or
cremondini@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net
2014-09-10 13:47:46.791 GMT
By Chiara Remondini
Sept. 10 (Bloomberg) -- Bernstein says acquisition of
Bostik at right price would be “big positive” for Henkel, be
very well received by investors, according to note.
* Bernstein (outperform) notes Bostik attractive as Henkel
already world’s largest adhesives co., has indicated
willingness to undertake major M&A
* Estimates Bostik is 4th player in global adhesives market
with share of ~3% (2013 rev. EU1.5b; estimates 2013 Ebit of
EU225m based on avg. of adhesives peer Ebit margins of ~15%)
* Bernstein sees significant possible positives from deal:
* Increase size of adhesives business by 19%, says its
view on Adhesives industry is “fundamentally positive”
* Complementary product portfolio, significant synergies
* Deal may be financially very attractive, re-leverage
Henkel’s balance sheet: price of EU3b with up to EU2b of
debt would still result in net debt to Ebitda of 0.7x
* Earnings accretive, says EPS ests. may “easily increase by
mid-to-high single-digits” in deal
* Notes as possible “limited” negatives: higher exposure to
Adhesives away from HPC, enhancing cyclical risk; antitrust
issues; Henkel may overpay if there is interest for business
* NOTE yday: Total considering sale of Bostik adhesives unit:
Reuters
* NOTE July 3: Henkel still had ~EU5b for deals after June
spree
* NOTE: Henkel generated ~50% of 2013 rev. from its Adhesives
Technologies business: Bloomberg data; further details on
business here
For Related News and Information:
First Word scrolling panel: FIRST<GO>
First Word newswire: NH BFW<GO>
To contact the reporter on this story:
Chiara Remondini in Milan at +39-02-8064-4241 or
cremondini@bloomberg.net
To contact the editor responsible for this story:
James Ludden at +44-20-7673-2645 or
jludden@bloomberg.net