FTC Moves to Block Henkel Deal for Liquid Nails Owner

According to Bloomberg, the proposed $725 million transaction would bring together two of the largest suppliers of liquid adhesives used in construction and home repair projects. The deal, which was not publicly announced before the lawsuit, involves Henkel, the world’s largest adhesives manufacturer, and Pittsburgh Paint, which owns the well-known Liquid Nails brand. Henkel markets adhesives under brands such as Loctite and LePage.

The FTC filed its complaint Thursday in federal court in New York, contending that the merger would harm competition by combining companies that have historically viewed each other as their closest rivals. Per Bloomberg, regulators said the two businesses have “long viewed the other as its top competitor,” raising concerns that the deal could lead to higher prices and fewer choices for consumers.

The transaction follows recent changes in ownership for the Liquid Nails brand. PPG Industries Inc. sold its US and Canadian architectural coatings business to private equity firm American Industrial Partners for $550 million last year, according to Bloomberg. After the sale closed in December 2024, the newly independent company adopted the name Pittsburgh Paint, returning to its original branding.

FTC officials framed the lawsuit as part of a broader effort by the Trump Administration to curb rising housing and renovation costs. “Affordable, high-quality housing is essential to the American Dream, and the antitrust laws protect Americans from anticompetitive mergers that threaten to drive up the costs of the products we use to build and maintain our homes,” Daniel Guarnera, who leads the agency’s bureau of competition, said in a statement cited by Bloomberg. The agency said the action aligns with its goal of lowering “the cost of homeownership and home improvement.”

Pittsburgh Paint pushed back against the FTC’s claims. The company “respectfully disagrees” with the lawsuit, a spokesperson said, adding that it still expects the transaction to close next year and plans to work with Henkel to defend the deal in court. Representatives for Henkel and American Industrial Partners did not respond to requests for comment, per Bloomberg.

Financial disclosures highlight the scale of the companies involved. Henkel, which is based in Düsseldorf, Germany, reported 11 billion euros, or about $12.9 billion, in sales from its adhesives technologies division in 2024, accounting for just over half of its total revenue, according to its annual report cited by Bloomberg. Pittsburgh Paint generated roughly $2 billion in sales in 2023, PPG said when it completed the sale to American Industrial Partners.

Source: Bloomberg