Henkel signs acquisition agreement Shiseido’s Asia-Pacific Hair Professional BusinessThe acquisition includes leading professional brands such as; Sublimation Also primience, licensed by Shiseido Professional Brands. Shiseido Professional is a salon-only brand that offers premium products for professional beauticians, including hair care, hair coloring, styling, and perms. To support business growth through a strong partnership with Henkel, Shiseido will hold a 20% stake in the Japanese corporation.
In fiscal year 2020, the acquired business reported sales of around €100 million and employed more than 500 people, including strong research and development capabilities. Businesses are present in most countries in the Asia-Pacific region. In terms of sales share, Japan, China and South Korea are the most important markets.
The transaction marks another step in the strengthening of Henkel’s Hair Professionals business in recent years. In 2014, Henkel acquired three of his US companies: Sexy Hair, Alterna and Kenra. In 2017, Henkel successfully completed the acquisition of Nattura Laboratorios and Shiseido’s North American hair professional business.
Henkel’s Professional Hair Care business holds leading positions in various international market segments. The business is one of the world’s top three beauty companies, offering a broad portfolio of hair care, hair styling and coloring brands exclusively for hairdressers, including Schwarzkopf Professional, Bonacure, Igora Royal and Authentic Beauty Concept. Generates over €1 billion in sales and will be part of the future Henkel Consumer Brands business unit, a new multi-category platform that will be established by combining the Laundry & Home Care and Beauty Care business units by early 2020 increase. 2023.
“This business is a perfect strategic fit with our existing portfolio by significantly expanding our position in the attractive Asia Pacific market while adding highly complementary brands and hair categories. This transaction will allow us to build a platform for innovation and growth of our professional business in this very exciting region, looking to further grow and develop our business through our 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 innovation.said Wolfgang Koenig, Executive Vice President Beauty Care at Henkel.
For Shiseido, the move means exiting the professional hair care business entirely. Last year, the company announced it had sold several businesses in North America and Asia with the aim of refocusing on high-end skin care products.
The acquisition is subject to customary closing conditions, including regulatory approvals.
