Henkel, a consumer goods company, is expanding in the Africa/Middle East and Eastern Europe regions with its purchase of hair care brands from Proctor and Gamble Company (NYSE: PG). For the fiscal year 2015, sales for the acquired brands totaled roughly $100 million.
The portfolio is primarily shampoo-focused and includes Pert, Shamtu, and Blendax. D sseldorf, Germany-based Henkel previously acquired the Pert brand in Latin America from Cincinnati, Ohio-based P&G in 2014.
In June, Henkel was unsuccessful in an attempt to purchase P&G’s Wella hair-care unit, losing out on the bid to Coty Inc (NYSE: COTY). Meanwhile, the company says this recent buy helps “further consolidate” the Pert brand into its portfolio. Financial details surrounding the transaction have not been disclosed.
“This acquisition is part of our strategy to further strengthen our footprint in emerging markets and to invest in strong country category positions,” says Hans Van Bylen, executive vice president at Henkel. Van Bylem is also responsible for the company’s beauty care business.
In 2015, beauty companies became attractive targets in the M&A market. In November, Coty followed its acquisition of the P&G assets with a $1.1 billion deal to buy Hypermarcas SA’s beauty and personal care business. In August, Carlyle Group’s (Nasdaq: CG) portfolio company NBTY Inc.’s purchased skin care treatment maker Dr. Organic.