Henkel has signed an agreement with Procter & Gamble (P&G) to acquire a range of hair care brands with focus on the Africa, Middle East and Eastern Europe regions.
The transaction includes a portfolio of brands with leading positions in the entry-level price segment. Major brands are Pert, Shamtu and Blendax, focusing on the shampoo segment. Key countries are Russia, Saudi Arabia and Turkey. With this acquisition, Henkel wants to expand its footprint in emerging markets and strengthen its position in some of the largest and fastest growing markets in Africa, Middle East and Eastern Europe.
In the fiscal year 2015, sales of the brands to be acquired amounted close to 100 million US dollar (about 92 million euros).
“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 responsible for 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.”
Already in May 2014 Henkel acquired the Pert brand in Latin America from P&G.
Financial details of the transaction, which is subject to approval from anti-trust authorities, were not disclosed.
P&G has also announced the sale of Brazilian baby care brand Hipoglós to Johnson & Johnson.
