Henkel signed an agreement to acquire the Asia-Pacific Hair Professional business of Shiseido. The acquisition comprises leading 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 colour 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 and employed more than 500 people, including strong R&D capabilities. The business is 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 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 3 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 1 billion euros 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.
"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 2 and 3 Hair Professional markets and important centers of trends and innovations," said Wolfgang König, Executive Vice President Beauty Care at Henkel.
For Shiseido, the move means withdrawing from the professional hair care business completely. Last year, the company has announced sold several businesses in North America and Asia with the aim to refocus on high-end skin care products.
The acquisition is subject to customary closing conditions, including regulatory approvals.