German maker buys Dial Corp. for $2.9 billion

PHOENIX (AP) -- Dial Corp., the maker of Dial soap, Renuzit air fresheners and Armour Star canned meats, is being acquired for about $2.9 billion in cash by Henkel, a German maker of detergents, cosmetics and adhesives.
The deal would give Henkel a bigger foothold in North America and a portfolio of well-known brands. It allows Dial to become part of a larger, global operation to compete better with consumer products behemoths like Procter & amp; Gamble and Unilever PLC.
The deal will keep Dial's headquarters in Scottsdale, Ariz., and Dial chief executive Herb Baum will continue in that role for two years. Baum said Monday that upper-level management would also stay put and that were no plans to shrink the company's workforce, currently at 2,900 employees.
Henkel has agreed to pay $28x.75 for Dial shares, an 11 percent premium over Dial's closing price of $25.88 Friday in New York trading.