Henkel buys 49% stake in UAE-based Polybit

Henkel has bought a 49 per cent stake and management rights in the UAE-based Polybit Industries Ltd for an undisclosed price, the German toiletries, laundry and adhesives giant said yesterday.

Polybit, with about 250 employees and sales of ¤25 million ($30 million) in 2004, makes waterproofing and corrosion-inhibiting sealants and coatings for the construction industry.

Henkel said the acquisition would allow it to profit from a boom in the construction sector in the Middle East.

The company has made several acquisitions in the past year to boost its adhesives business as it confronts tepid growth in its cosmetics and laundry markets, which bring in the majority of its revenue.

In October of 2004, it announced the purchase of Chicago-based adhesives firm Sovereign Chemicals for about $575 million in cash, including all debt and liabilites.

In December, it acquired Concorde Participation S.A. of France for an undisclosed price.

Concorde, which makes water treatment products, had sales of ¤15 million in 2003.