FRANKFURT (Reuters) - German consumer goods group Henkel & Co (DE:HNKG_p) has agreed to buy French laundry and household cleaning products group Spotless in a deal worth around 940 million euros ($1.28 billion), as it expands via acquisitions, it said on Thursday.
Henkel, whose brands include Persil, Loctite and Schwarzkopf, has around 4 billion euros available for acquisitions and earlier this week said it was buying three U.S. hair care brands for 270 million euros.
Henkel is buying Spotless, whose brands include Dylon and Vim, from private equity firm BC Partners, and is funding the deal, which includes debt, using cash.
"This acquisition is part of Henkel's global strategy to selectively invest in attractive country category positions in mature markets", Henkel Chief Executive Kasper Rorsted said in a statement.
A spokesman said further deals were possible.
Spotless, which also makes insect control products, has around 470 employees and generated sales of about 280 million euros in 2013. The transaction values Spotless at 12.1 times its earnings before interest, tax, depreciation and amortisation.
The deal, which Henkel said would be immediately accretive to earnings, is subject to approval by antitrust authorities and is expected to be completed in the first quarter of 2015.
BC Partners was advised by JP Morgan and Rothschild on the transaction.
(Reporting by Victoria Bryan and Matthias Inverardi; Editing by Matt Driskill)