TEL AVIV, Israel, Jan. 13 /PRNewswire-FirstCall/ -- Israel Chemicals Ltd. ("ICL") , a multinational fertilizer and specialty chemicals company, today announced that ICL Performance Products has acquired substantially all the business operations and the assets of the Industrial Water Treatment business unit ("HWT") of Henkel KGaA for euro 60 million, approximately $89 million. After the acquisition, HWT will become a part of the ICL Performance Products segment, giving the segment annual revenues of approximately $1.1 billion (based on 2006 data).
HWT is a major European supplier of water treatment chemicals, solutions, services and equipment especially for industry, including, inter alia, steel & coke production, power generation, metal-working, chemical, petrochemical, food & beverage industries, where it has applications for cooling towers, power stations, boilers, drinking water and waste water treatment as well as water conditioning. Its primary target markets include Germany, France, Spain, Italy and Turkey. As part of this transaction, ICL will acquire the shares of Henkel Concorde, a French company that is active in the water treatment field. Currently, HWT employs approximately 180 people in sales, service, R&D and in the production plant in Henkel Concorde. As a result of the acquisition ICL will employ most of these employees. Within Henkel's portfolio the water treatment business is a non-core activity.
In 2006, the business unit had sales of euro 52 million (about $77 million), gross margin of approximately 53% and operating margin of approximately 13%, all based on un-audited data.
ICL is financing the purchase from its own resources and from existing bank credit lines.
ICL intends to integrate HWT into the water treatment business of ICL Performance Products with the goal of realizing operating synergies in the purchase of raw materials, complementary products and geographical markets. The acquisition will expand ICL Performance Products' offerings of water treatment products, application know-how and solutions while also enhancing its geographic marketing reach. In addition, the acquisition will enhance ICL Performance Products' R&D capabilities through the addition of advanced water treatment technology and intellectual property.
About ICL Performance Products
ICL Performance Products is one of the core operating segments of ICL , a multinational producer of a broad range of chemicals and chemical-based products. ICL Performance Products' 2006 revenues totaled over $1 billion with operating profit of approximately $86 million. ICL Performance Products' major production facilities are located in Europe, North and South America, Israel and China. ICL Performance Products' product lines include food-grade phosphoric acid, phosphate salts, food additives and hygiene products, as well as specialty products for paper industry, construction sites and water treatment based on aluminium-salts and polymers. Its food additives contribute to the appearance, texture, taste and preservation of a wide variety of foods, including processed meat, fish and seafood as well as cheese and milk products.
About ICL
ICL is one of the world's leading fertilizer and specialty chemicals companies. ICL produces approximately a third of the world's bromine and approximately 10% of its potash. ICL is a leading supplier of fertilizers in Europe and a major player in specialty fertilizer market segments. One of the world's most integrated manufacturers and suppliers of phosphate products, ICL has become the world's leading provider of pure phosphoric acid and a major specialty phosphate player. The Company employs approximately 9,300 employees worldwide.
ICL is comprised of three core segments: ICL Fertilizers, ICL Industrial Products and ICL Performance Products. Its major production activities are located in Israel, Europe, the US, South America and China, and are supported by major global marketing and logistics networks. ICL benefits from exclusive concessions to extract minerals from Israel's Dead Sea, a vast source of high- quality and low-cost potash, bromine, magnesium chloride and sodium chloride. ICL also mines phosphate rock from Israel's Negev Desert and potash and salt from its mines in Spain and the UK.
ICL's (Israel Chemicals Ltd.) shares are traded on the Tel Aviv Stock Exchange .
PRESS CONTACT
Fleisher Communications and Public Relations
Amiram Fleisher
+972-3-6241241
