Procter & Gamble has announced that it is shedding hair care and salon brand Frederic Fekkai as part of the company’s efforts to consolidate its business activities with a smaller number of core brands.
P&G reportedly purchased Frederic Fekkai from private-equity firm Catterton Partners for slightly over US$400 million in 2008.
Frederic Fekkai is primarily a North American brand with 225 employees, the vast majority of which are stylists and salon workers.
UK fragrance company Designer Parfums and US beauty retailer LUXE Brands have formed a new joint venture that will purchase the business. Having completing the acquisition, Designer Parfums and LUXE Brands will rename the brand Fekkai Brands.
Founder Frédéric Fekkai will retain his advisory at the flagship salon on 5th Avenue in New York.
Procter & Gamble announced plans last year to shed at least 100 brands within is beauty division, which includes skin care and makeup, hair care, and fragrances segments. The large-scale divestiture was part of a plan to streamline business operations and enable the company to focus on more profitable lines.
Procter & Gamble is currently rumored to be in the process of selling other hair care brands such as Wella and Clairol, to enable it to focus on more profitable brands such as Pantene and Head & Shoulders.
The group’s revenues have been declining for the last three years with its beauty division posting a sharp earnings decline last year, falling behind rivals L’Oréal and