Soap Dish

The Henkel Group of Dusseldorf, Germany, and The Dial Corp. (Scottsdale, Ariz.) have signed an agreement under which Henkel will acquire all of the outstanding shares of Dial for a total cash payment worth approximately $2.9 billion.

Dial is one of the country's largest manufacturer of consumer goods (Dial soap, Breck shampoos, 20 Mule Team, Borateem, Fels Naptha, Purex, Sta-Flo, Renuzit, Armour-brand meats). Henkel also makes and sells personal care products, laundry detergents, cosmetics and adhesives in 126 countries. But Henkel ceo Ulrich Lehner said that while he hopes to expand Henkel's U.S. presence with the Dial products and marketing organization he does not plan to import Henkel products into the United States.

Dial ceo Herb Baum said he does not see Henkel dropping huge amounts of cash on Dial. But he does expect to take advantage of Henkel's research and development technology, which he described as more advanced.

Under the terms of the deal, Baum will continue in his role as ceo of Dial for the next two years, and other top-level Dial management is expected to stay. Dial's headquarters will remain in Scottsdale. The transaction is subject to the approval of the Dial shareholders and the receipt of customary regulatory approvals, which is expected at the end of April 2004.

Henkel is expected to sell off a portion of its investment in The Clorox Co. (Oakland, Calif.( or Ecolab Inc. (St. Paul, Minn.) to raise the cash to pay Dial's stockholders.