Net assets and financial position

Acquisitions and divestments

Effective January 1, 2011, we assumed control over Schwarzkopf Inc., Culver City, California, USA. Having a direct presence in the US hair salon segment enables us to better exhaust the potential of this market. The purchase price paid was 42 million euros.

As of April 1, 2011, we now include in our consolidated financial statements Purbond Group, Hatfield, Great Britain, previously accounted for using the equity method. The purchase price paid amounted to 4 million euros.

In the second half of 2011, we spent 3 million euros acquiring outstanding non-controlling interestsProportion of equity attributable to third parties in subsidiaries included within the scope of consolidation. Previously termed “minority interests.” Valued on a proportional net asset basis. A pro-rata portion of the net earnings of a corporation is due to shareholders owning non-controlling interests.
in Rilken Cosmetics Industry S.A., Athens, Greece. Effective December 31, 2011, we increased our shareholding from 50 to 78 percent at a cost of 3 million euros, with the intention of acquiring 100 percent of the shares in the future.

At the end of January 2011, we disposed of our non-core TAED bleach activator business in Ireland for 4 million euros.

On May 31, 2011, we sold our shares in Henkel India Ltd., Chennai, India, for 29 million euros, generating a gain of 48 million euros.

Effective June 30, 2011, we divested our roofing membrane business under the Wolfin brand operated by Adhesive Technologies. The proceeds of the sale amounted to 13 million euros with a gain of 9 million euros.

On December 9, 2011, we also disposed of our non-core corrosion-protection business in the USA operated by the Adhesive Technologies business sector. The proceeds of the sale were 8 million euros, resulting in a gain of 4 million euros.

On December 15, 2011, we sold our 51 percent share in the joint venture Cemedine Henkel Co. Ltd., Tokyo, Japan, generating proceeds of 6 million euros and a gain of 1 million euros.

For further details relating to the acquisitions and divestments made, please refer to the Notes on Acquisitions and divestments.

Neither the acquisitions and divestments made nor other measures undertaken resulted in any changes in our business and organizational structure. For further details relating to our organization and business activities, please refer to the corresponding passages on Operational activities.

Thanks to continuing good business performance and our improved financial profile, we regained our target ratings of “A flat” (Standard & Poor’s) and “A2” (Moody’s) in the second quarter of 2011. Looking forward, we intend not to jeopardize our target ratings in the long term when assessing possible acquisitions.