Henkel announced on 9th February that it signed an agreement to acquire the Asia-Pacific Hair Professional business of Shiseido. The acquisition comprises Professional brands such as Sublimic or Primience, endorsed by the licensed Shiseido Professional brand. 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.
In fiscal 2020, the business to be acquired reported sales of about 100 million euros (US$ 113 million) and employed more than 500 people, including strong R&D capabilities. 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. This move will also further strengthen our Hair Professional business which has already shown a 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.
“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. 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 two and three Hair Professional markets and important centers of trends and innovations,” said Wolfgang König, Executive Vice President Beauty Care at Henkel.
The transaction marks another step in strengthening Henkel’s Hair Professional business in recent years. In 2014, Henkel acquired the three US companies Sexy Hair, Alterna and Kenra. In 2017, Henkel successfully closed the acquisition of Nattura Laboratorios and the North American Hair Professional business of Shiseido.
The Professional Hair Care business of Henkel holds leading market positions in various international market segments. The business is among the top three beauty companies worldwide and offers a broad portfolio of hair care, hair styling and coloration brands exclusively for hairdressers, such as Schwarzkopf Professional, Bonacure, Igora Royal and Authentic Beauty Concept. It generates sales of more than one billion euros (US$ 1.14 billion ) 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 beginning of 2023.
The acquisition is subject to customary closing conditions, including regulatory approvals.