UPDATE 3-Henkel Bets on Emerging Markets and M&A as Europe Flags

Posted on 11/28/2012 2:22:50 PM By Reuters

Amid slower growth in adhesives and lackluster European markets, Henkel is aiming for 20 billion euros in sales by 2016, with an operating margin of 14% projected for this year. Plans to achieve these goals include acquisitions and expansion into developing markets. Speaking openly about these plans Chief Executive Kasper Rorsted reported, “We will go out and actively acquire companies over the next four years.” Henkel is well equipped to acquire business in new markets. Four years ago the group had a net debt of four billion euros, but that has been reduced by almost 85%. However, Rorsted also made the distinction that Henkel, “will not spend money because it's burning a hole in [their] pocket. ” In addition to acquisitions, Henkel plans to invest two billion euros in seven research and development centers strategically located in developing markets such as Brazil, Mexico, South Africa, China, and South Korea.