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Dial and Henkel Expand Joint Venture Cooperation Throughout NAFTA
Announce Investment in Mexican Detergent Manufacturer
SCOTTSDALE, Ariz. and Düsseldorf, Germany (ots-PRNewswire) - The Dial Corporation (NYSE: DL) and Henkel Group of Duesseldorf, Germany, announced today that they have signed an agreement to expand their joint venture cooperation in the field of detergents into Mexico by making an 80 percent investment in Fabrica de Jabon Mariano Salgado, S.A. de C.V. ("FJMS"), a Mexican manufacturer and marketer of detergents and soaps.
Following the establishment of a US joint venture in early 1999 Dial and Henkel signed an agreement to form a second joint venture in Mexico which will be named Dial/Henkel Mexico, S.A. de C.V. Henkel will own 51 percent of the joint venture company and Dial will own 49 percent. Further terms of the transaction were not disclosed.
FJMS, founded in 1896, is based in Toluca, Mexico, where its manufacturing operations are located. FJMS brings to market brands well known among Mexican consumers, such as its "123" laundry detergents. FJMS markets its products via a strong national distribution network. For more information about FJMS visit the Company's Web site at www.salgadosoap.com .
Both Dial and Henkel will license their international laundry detergents and household cleaning trademarks and technology to FJMS with a view toward launching a new line of consumer products. Dial will continue to operate its wholly-owned Mexican subsidiary, whose products are primarily in the personal care and air freshener categories.
"The Mexican joint venture will continue to leverage the synergy between Dial and Henkel," said Mal Jozoff, Dial's Chairman and CEO. "We are once again capitalizing on the combined technical and marketing expertise of Henkel and Dial, as well as on the rich heritage, consumer brand name recognition and the infrastructure of FJMS. This new joint venture provides us another opportunity to continue our successful international expansion strategy and enhance our ability to meet the needs of our international customers."
"We regard Mexico, Latin America's second largest detergent market, a very important and attractive marketplace," said Dr. Klaus Morwind, Henkel's Executive Vice President for Detergents. "Our joint venture in Mexico is a natural outgrowth of the Dial and Henkel cooperation in the field of detergents. We expect that the combination of FJMS' comprehensive market knowledge and Dial/Henkel's worldwide know-how will create new opportunities for substantial revenue and market share growth."
The Dial Corporation is one of America's leading manufacturers of consumer products, including Dial soaps, Purex laundry detergents, Renuzit air fresheners, Armour Star canned meats, and the Sarah Michaels, Freeman Cosmetics and Nature's Accents personal care brands. Dial products have been in the American marketplace for more than 100 years. For more information about The Dial Corporation, visit the Company's Web site at www.dialcorp.com .
Henkel is a worldwide operating specialist in adhesives, brand-name products and in systems businesses with affiliates in over 70 countries. Henkel is the number one producer of Adhesives, Surface Technologies and Industrial and Institutional Hygiene (jointly with Ecolab Inc.) on a worldwide scale. In Detergents it ranks second in Continental Europe and in Cosmetics Henkel holds the number three position in Europe. Cognis, the recently carved-out chemicals business is the world's leading producer of Oleochemicals.
ots Original Text Service: Henkel Group Internet: http://recherche.newsaktuell.de
Contact: Investor Relations, Magdalena Moll, +49-211-7-97-16-31, or Waltraud Muller, +49-211-7-97-72-78, both of Henkel, fax, +49-211-7-98-28-63