Henkel has agreed to acquire the Asia-Pacific Hair Professional business of Shiseido.
The acquisition comprises leading professional brands such as Sublimic and 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% share in the legal entity in Japan.
In fiscal 2020, the business to be acquired reported sales of approximately €100 million and employed more than 500 people. 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 in the region, Japan, China, and South Korea are the most important markets.
“We are excited about the opportunity to add these strong and successful premium brands to our Professional portfolio,” said Wolfgang König, executive vice-president of Beauty Care at Henkel.
“This business is a perfect strategic fit to our existing portfolio, adding highly complementary brands and hair categories while 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 centres of trends and innovations.”
Henkel’s Professional Hair Care business holds leading market positions in various international market segments. The business is among the top three beauty companies globally and offers a broad portfolio of hair care, hair styling, and colouration brands exclusively for hairdressers, such as Schwarzkopf Professional, Bonacure, Igore Royal and Authentic Beauty Concept.
The business generates more than €1 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 by the start of 2023 at the latest.