By Ellen Emmerentze Jervell
Henkel AG (HEN.XE) said Tuesday it had officially closed the transaction of Sun Products Corp. and was now the second-biggest laundry-care company in the U.S.
The company also posted a gain in third-quarter net profit and said it was already seeing a positive impact from the acquisition.
The German manufacturing major said in June it would buy the maker of All and Wisk laundry detergents for 3.2 billion euros ($3.5 billion) to strengthen its presence in North America. The Sun Products deal was the second-largest transaction in Henkel's history.
Henkel said Tuesday net profit in the latest period was 576 million euros ($636 million), up from EUR484 million the year before. Sales were 2.8% higher, at EUR4.7 billion. This was in line with analysts' expectations. Organic laundry-care sales rose 4% in the third quarter, buoyed by brands acquired in the Sun Products deal.
"We are proud and glad to welcome the Sun employees to Henkel and we will now focus on the successful integration into our North American Laundry & Home Care business," said Chief Executive Hans Van Bylen.
Henkel has been one of the most successful blue-chip companies in Germany in recent years, posting rising profit and sales almost every quarter. Earlier this year, the company raised its guidance for 2016.
In the third quarter, Henkel did particularly well in emerging markets. Organic sales rose 6.7% in the region.
Henkel on Tuesday confirmed its guidance for 2016.
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(END) Dow Jones Newswires
November 08, 2016 02:20 ET (07:20 GMT)
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