Henkel to Acquire Range of Hair Care Brands from P&G, Focusing on Africa/Middle East, Eastern Europe; Terms Not Disclosed

Henkel

signed an agreement with Procter & Gamble

to acquire a range of hair care brands with focus on the Africa/Middle East and Eastern Europe regions. With the acquisition, Henkel will 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. 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. In the fiscal year 2015, sales of the brands to be acquired amounted close to 100 million US dollar. "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. The brand offers a full range of hair care products, including shampoos and conditioners. The latest transaction will help to further consolidate the Pert brand into Henkel's portfolio. Both parties agreed not to disclose any financial details about the transaction. Closing of the acquisition is subject to approval from anti-trust authorities.