Mergers & Acquisitions

FTC Blocks $725M Loctite-Liquid Nails Merger

Court preserves competition in construction adhesives

By Tanja Kern, Senior Strategic Content Editor

construction adhesives in retail display — Tanja Kern / Walls & Ceilings

A federal court has blocked Henkel AG & Co. KGaA's proposed $725 million acquisition of Liquid Nails, preserving competition between two of the largest construction adhesive brands sold in the United States.

On Aug. 14, the U.S. District Court for the Southern District of New York granted the Federal Trade Commission's request for a permanent injunction preventing Henkel, manufacturer of Loctite construction adhesives, from acquiring Liquid Nails from private equity firm American Industrial Partners. The FTC said the transaction would create a highly concentrated market under federal merger guidelines.

The FTC first sued to block the $725 million deal in December 2025, arguing that it would combine the two largest construction adhesive brands sold through major retailers including Home Depot, Lowe’s and Ace Hardware. Regulators said Loctite and Liquid Nails had long competed directly on price, quality and product innovation, and warned that eliminating that rivalry could increase costs for materials used in home construction and repair.

The agency alleged that combining the companies would reduce head-to-head competition and could lead to higher prices, lower quality and less product innovation.

"Anyone who looked at the construction adhesives shelves of a hardware store or home improvement retailer could see that a merger between Loctite and Liquid Nails would be a bad deal for Americans," said Daniel Guarnera, director of the FTC's Bureau of Competition.

Guarnera said the court's decision would maintain competition between the brands and help prevent higher costs for products used in home construction and maintenance. The ruling followed a seven-day trial and represents the FTC's new approach of seeking permanent injunctions against mergers in federal court without continuing the cases through separate administrative proceedings.

This article was originally posted on www.wconline.com.

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Tanja Kern covers economic trends and the intersection of architecture, design, and construction for Roofing Contractor, with an emphasis on the forces reshaping the industry. She develops and amplifies content that connects roofing professionals with the intelligence they need to compete and grow.

With more than 20 years of experience, Tanja has written for national business, consumer and trade publications. She holds a Master of Science in magazine publishing from Northwestern University's Medill School of Journalism.