The German consumer goods multinational Henkel has announced it will acquire the Greater China business of the P&G-owned haircare brand Sassoon. Henkel, which already owns Schwarzkopf, said the acquisition will complement its current portfolio of consumer brands in China by “covering a white spot” in its premium retail segment.
The Düsseldorf-headquartered company confirmed the agreement on its website on February 2, noting that it is subject to a final round of regulatory approvals. Henkel has not disclosed the acquisition price for the Sassoon brand, but earlier reports from October stated P&G was considering selling the Sassoon Greater China business for an estimated 1 billion USD.
“As part of our strategic growth agenda, we are pursuing targeted acquisitions to actively shape and strengthen our portfolio,” Henkel’s Chief Executive Carsten Knobel said in a press statement. “The transaction will be a step-change for our Consumer Brands business in China, providing the opportunity to further scale our business in one of our core categories in this attractive, growing market.”
While Henkel is looking to expand its portfolio, Proctor & Gamble has been slowly working on streamlining its portfolio for almost 10 years. Since 2015, P&G has sold 43 brands, including Wella, Clairol and Max Factor to American multinational Coty Inc. for a combined 12.5 billion USD, whilst retaining well-known brands like SK-II and Olay.
“Through this adjustment [selling Sassoon’s Greater China business], we will focus more on core product lines, optimize resources and investment, and promote the development of P&G’s haircare business in Greater China,” a P&G spokesperson told Beijing-based Interface News.