The German chemical giant Henkel has hired US investment bank Merrill Lynch to conduct the sale of its speciality chemicals subsidiary Cognis. The subsidiary is worth an estimated EUR 3-3.5 bn. Henkel has sent a memorandum to potential buyers who have already shown an interest in Cognis. Only these companies will be allowed to participate in the auction. In 1999 Cognis made a EUR 2.85 bn turnover with 10,000 employees in 50 countries. It hopes to increase its turnover to EUR 3.2 bn by 2004. The company accounts for under 25 per cent of Henkel's sales and specializes in oleochemicals (fatty acids and compounds, glycerine, food additives andvitamin E), personal care products (almond and coconut oil, aromas for hygiene products, detergents and pharmaceuticals) and organic specialities(additives for paints and plastics, auxiliary products for textiles, leather and paper). Source: Chemical Business Newsbase
