TAGS: Hair Care
Henkel signed an agreement to acquire the Asia-Pacific Hair Professional business of Shiseido. The acquisition comprises of Professional brands such as Sublimic or Primience, endorsed by the licensed Shiseido Professional brand.
Strategic Planning and Future Growth
The business is present in most countries in the Asia-Pacific region, which is known as a strong hub for beauty innovations and trends. In terms of sales share, Japan, China, and South Korea are the most important markets.
“As part of our strategic agenda for purposeful growth, compelling acquisitions play a key role in actively shaping our portfolio. This transaction is a step-change for Henkel’s Hair Professional business. By expanding our Professional business in Asia-Pacific, we will become one of the leading players in this highly dynamic region with attractive future growth potential,” said Carsten Knobel.
Shiseido Professional is a salon-exclusive brand offering premium products for professional hairdressers in hair care, hair color, and styling items as well as perm solutions. To support business growth through a strong partnership with Henkel, Shiseido will retain a 20 percent share in the legal entity in Japan.
“This move will also further strengthen our Hair Professional business which has already shown very strong development in the past years and will be an integral part of our future Consumer Brands business unit,” said Henkel CEO Carsten Knobel.
Value Addition in Henkel’s Existing Haircare Portfolio
The Hair Care business of Henkel holds one of the leading market positions in various international market segments. The business offers a broad portfolio of hair care, hair styling, and coloration brands exclusively for hairdressers.
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We are excited about the opportunity to add these strong and successful premium brands to our Professional portfolio. This business is a perfect strategic fit to our existing portfolio, adding highly complementary brands and hair categories whilst significantly expanding our position in the attractive Asia-Pacific market,” said Wolfgang König.
“The transaction will enable us to create an innovation and growth platform for our Professional business in this very exciting region aiming for further business growth and development through the agreement with Shiseido. We will significantly increase our market position in Japan and China, the world’s top 2 and 3 Hair Professional markets and important centers of trends and innovations,” said Wolfgang König, executive vice president of beauty care at Henkel.
The business generates sales and will be part of the future Henkel Consumer Brands business unit, the new multi-category platform which will be established through the merger of the Laundry & Home Care and Beauty Care business units latest by the beginning of 2023.
Source: Henkel