Having lost out to Coty in the auction of P&G’s beauty business last year, Henkel has finally triumphed with the acquisition of a portfolio of hair care brands from Procter & Gamble, with a focus on the Africa/Middle East and Eastern European regions.
The deal will see the German manufacturer of Schwarzkopf expand its footprint in emerging markets such as Russia, Saudi Arabia and Turkey with the addition of Pert – which Henkel already owns in Latin America – Shamtu and Blendex as well as strengthening its core hair care category.
Terms of the deal were not disclosed but sales of the brands amounted to US$100 million in 2015. The deal is subject to regulatory approval.
“This acquisition is part of our strategy to further strengthen our footprint in emerging markets and to invest in strong country category positions. We are convinced that emerging markets will continue to generate above-average growth in the future,” said Hans Van Bylen, Executive Vice president and head of Henkel’s Beauty Care Business. “These brands are a perfect fit for our Beauty Care business. They will strengthen our existing core category hair care and provide a platform for further expansion.”