The Persil manufacturer is getting closer to withdrawing from Russia.
(Photo: dpa)
Dusseldorf Henkel takes another step towards the sale of its own business in Russia. As of the new year, the Persil manufacturer is relocating its Russian business to the new, independent business unit “Lab Industries”, which will have its own IT system, among other things. However, the businesses will remain part of the group until the planned sale.
Experts refer to the spin-off of a part of a company as an independent entity as a carve-out. “This is a technical prerequisite for preparing for the announced sale of our Russian business,” a Henkel spokesman told Handelsblatt on Friday afternoon.
He confirmed a report by the Russian news agency Tass. She had reported that Henkel’s business partners in Russia were informed that they would be dealing with another Henkel business unit from January.
Henkel employed 2,500 people in Russia
Henkel was more heavily invested in Russia than any other Dax group. The Düsseldorf-based company achieved five percent of its group sales there with around one billion euros and employed 2,500 people in eleven plants. The manufacturer of Persil, Pril or Pritt started building up its business in Russia 30 years ago.
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In mid-April, Henkel announced its withdrawal from Russia in response to the Russian war of aggression against Ukraine. The final decision was not made until eight weeks after the beginning of the war. For many observers, Henkel acted too hesitantly and only after great public pressure.
Russia’s withdrawal by the end of the year is likely to be difficult
Henkel actually wanted to have completely withdrawn from Russia by the end of the year. However, it will be difficult to keep to this schedule. This is also due to the fact that the Russian authorities first have to agree to a sale. This part of the process is “difficult to estimate in terms of time,” said Henkel CFO Marco Swoboda when presenting the latest quarterly figures.
Dismantling East
184
Million Euros
Henkel has already written off its Russian business in the first half of 2022.
Henkel is currently still in talks with a few selected interested parties after the group initially exchanged views with over 80 potential buyers. Given the size of Henkel’s business in Russia, it is likely that there will be multiple buyers.
In addition, it is likely to result in a Russian buyer, as has been the case with several sales recently. For example, Mercedes had sold its sales company and a car assembly plant to a Russian investor.
War in Ukraine: Henkel has already shut down its industrial adhesives business in Russia
Henkel has already discontinued some activities, especially in its industrial adhesives business, because the group fears that industrial knowledge will be lost to competitors or that the products will be used for military activities.
A management buyout initially considered by Henkel, such as that proposed by Dr. Oetker has implemented, the group will probably not implement it for financial reasons. However, the group is already expecting losses from the sale of its Russian businesses: Henkel already wrote off 184 million euros in the first half of 2022. Chief Financial Officer Swoboda recently said: “At the moment we have no indication that a further impairment is necessary.”
More: After a power struggle on the board: criticism of Henkel’s supervisory board chief Simone Bagel-Trah is growing