Henkel announced on March 2, 2017 that it has entered into exclusive negotiations with GCP Applied Technologies to acquire its global Darex Packaging Technologies business for $1.05 billion on a cash and debt free basis. It is reported that Henkel has submitted a binding offer for the Darex Packaging Technologies business. Based in Cambridge, MA, USA, Darex supplies high-performance sealants and coatings for the metal packaging industry, as well as personal care and industrial containers around the globe. It serves various global customers producing beverage, food or aerosol cans, ensuring with its solutions the highest quality standards for many of the world's most recognized consumer brands. In fiscal 2016, Darex reportedly generated sales of around $300 million. The company has about 700 employees and 20 sites in 19 countries. Henkel CEO Hans Van Bylen said, “The intended transaction is in line with our strategy to strengthen our portfolio through targeted acquisitions and would reinforce the position of our Adhesive Technologies business as a global market and technology leader.” “We are excited about the opportunity to add the high-performance Darex business to our existing Adhesives Technologies portfolio. We are glad that we are now entering into exclusive negotiations about a possible acquisition. Darex’s experience in developing innovative, high-performance sealants and coatings will underpin our commitment to provide our global customers with best-in-class solutions,” said Jan-Dirk Auris, Executive Vice President Adhesive Technologies at Henkel. ”This business is the perfect fit for our existing portfolio serving the metal packing industry and would therefore strengthen our position in this highly attractive and non-cyclical business. We would be happy to welcome to Henkel such a successful and experienced strong team with long-standing business expertise.” In connection with this binding offer, GCP will begin a consultation process with the relevant Works Councils and Labor Unions. Upon completion of that process, it is intended to enter into a definitive purchase and sale agreement in respect of the proposed sale. The proposed transaction will also be subject to customary closing conditions, including regulatory approvals.