Henkel takes over US adhesives firm

German adhesive giant Henkel has bought US-based Sovereign Speciality Chemicals in a 315m ($575m) deal.

"It's a real step forward for Henkel, giving them a strong manufacturing and laboratory base in the UK for their industrial adhesives," said Henkel UK business manager for graphic arts Greg Douglas.

"It will also add price and service improvements for all of our customers."

Sovereign's UK site in Newark employs 100 staff. It produces hot-melt adhesives and a variety of varnishes, coatings and animal/jelly book binding adhesives.

The purchase has also added UV coating technology and cold-seal products, which are used in the flexible packaging industry, to Henkel's range.

One of the aims of the enlarged UK arm is to build on the worldwide success of the latest generation of Henkel's Purmelt PUR glue, which previously had a limited penetration in the UK.

"It's a much, much stronger adhesive system... and uses Henkel's fast-cure reactive curing system," said Douglas.

The UK operation will also be pushing Henkel's Safe-T-Melt low-temperature hot-melt, which works at 1200C, rather than the typical 1700C, which it will start manufacturing at Newark in the near future.

Regulatory authorities have approved the purchase of Sovereign, which was first announced in October. The Sovereign name, and the majority of its brand idents will be changed to Henkel over the summer.

Sovereign bought the UK operation, previously Croda adhesives, in 2000.

Story by Darryl Danielli