Christopher Rossbach of J. Stern & Co. presented his in-depth investment thesis on Henkel (Germany: HEN3) at European Investing Summit 2019.
Henkel is a leading consumer goods and adhesives company. It is the largest supplier of adhesives with ~14% global share,. It has a solid franchise in Home and Personal Care, operating primarily in the laundry, hair care, and bath and shower categories with a consolidated #1 and #2 position in Western and Eastern Europe and a significant presence in select overseas markets. Henkel is an underappreciated asset with a leadership position in its targeted markets. The company was historically a collection of under-managed assets but following a change of management in 2008, it embarked on a multi-year transformational program, turning into a stable, high-value business. Increased competitive pressures and operational mishaps in the consumer business have been a headwind, but the management team is taking the right steps to address these through €300 million in incremental investments and a strategic review of the Beauty portfolio. The slowdown in the auto and electronics end markets has also created headwinds for the Adhesives business. The unlevered balance sheet provides strategic optionality.
The full session is available exclusively to members of MOI Global.
Members, log in below to access the full session.
Not a member?
Thank you for your interest. Please note that MOI Global is closed to new members at this time. If you would like to join the waiting list, complete the following form:
About the instructor:
Chris Rossbach is Managing Partner of the London-based private investment firm, J. Stern & Co. Established to provide investments for the Stern family, it is devoted to long-term investments for families, charities, institutions and other long-term investors with a multi-generational approach. J. Stern & Co. builds on the Stern family’s 200 year old banking tradition with a conservative approach and institutional-level analysis and resources. It manages bespoke concentrated global equities portfolios and funds following a strict fundamental investment approach, looking for quality and value, based on its own proprietary analysis, with a long-term investment horizon. Prior to co-founding J. Stern & Co., Chris had senior investment roles at Merian Capital, Magnetar Capital, Lansdowne Partners and Perry Capital. Chris holds a BA from Yale University and a MBA from Harvard Business School.