By Kelly Cloonan
The Federal Trade Commission sued to block Henkel from acquiring Liquid Nails, a competitor of its construction adhesive brand Loctite.
The deal would combine the two biggest brands of construction adhesives, hurting competition and leading to higher prices and lower quality, the FTC said Thursday.
The FTC said its suit aims to prevent U.S. consumers from paying higher prices for materials used to build and maintain homes, lowering the cost of housing in the process.
Under the proposed deal, Henkel plans to acquire Liquid Nails for $725 million from private-equity firm American Industrial Partners, the FTC said.
Last year, the New York private-equity firm bought PPG Industries' architectural-coatings business, which included the Liquid Nails brand, in a corporate carve-out. The architectural-coatings unit, which also owns brands such as include Glidden and Olympic, was renamed Pittsburgh Paints.
Pittsburgh Paints said it disagrees with the FTC's decision to initiate litigation regarding the proposed sale of its adhesives, sealants, and restoration brands, which include Mulco and Homax, in addition to Liquid Nails.
"We have engaged constructively with the FTC for months, and we remain confident that the proposed transaction would deliver meaningful value to supply chain partners, contractors, and American consumers who continue to navigate inflationary challenges," the company said.
Henkel didn't immediately respond to a request for comment.
The latest FTC action comes about a month after the regulator lost its effort to challenge Chicago private-equity firm GTCR's acquisition of medical-device coatings manufacturer Surmodics.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
12-12-25 1142ET
