German household products producer Henkel AG & Co. KGaA has entered into an agreement to acquire laundry and home care products manufacturer JemPak Corp. from Canada's Acasta Enterprises Inc. for C$118 million.
The deal, which is on a cash-free and debt-free basis, is expected to close on or before May 31, according to May 10 statements released by both Henkel and Acasta.
Henkel said the acquisition will bolster its laundry and home care portfolio in North America, while Acasta said the transaction will help improve its capital structure as it seeks to pay down debt.
Canaccord Genuity Corp. served as financial adviser to Acasta, while Goodmans LLP acted as legal counsel.
The move comes almost a month after Henkel, which manufactures Persil and Purex laundry care products, launched a new laundry detergent production line in Poland.
