In January 1997 Henkel KGaA, the Düsseldorf-based consumer and industrial goods group, completed its $1.2 billion acquisition of Loctite, the US-based adhesives business with an international footprint. I was Henkel’s South East Asia lead for the acquisition and integration of the Loctite consumer business, which I brought into the region from 1997 until I moved to lead Henkel’s adhesives business in Russia in July 1998.
Role
South East Asia lead, $1.2bn acquisition and integration of the Loctite consumer business, within Henkel’s Adhesives division (1997 to 1998). I was responsible for leading the integration of the Loctite consumer business into Henkel’s South East Asia region, during my years with Henkel.
What I did
- Confirmed the acquisition rationale, the potential synergies and the critical success factors for the consumer business across South East Asia.
- Set a realistic integration plan and time frame, and allocated roles and responsibilities early, to avoid wasted time and distraction later.
- Worked with the internal executive project team and the external advisers, holding regular meetings with the project task leaders to keep the work on track.
- Kept the board updated on progress and on risk factors as they developed.
- Managed the relationship with the Loctite side: hosting and chairing “getting to know you” meetings and keeping the dialogue open while the two organisations came together.
Results
Not every synergy identified in the planning phase was realised, because of issues in the post-acquisition implementation, and that was a significant learning point: integration is where deal value is won or lost. It shaped how I have approached every integration since. The approach is practical: protect revenue, retain key people, capture synergies in the right order.
To talk through an acquisition or integration your board is weighing up, email me or call me on +44 (0)20 7099 2621.
More on my board work with industrial and consumer goods businesses.