Henkel becomes a leading player in Asia's hair professional business
SINGAPORE, July 4, 2022 /PRNewswire/ -- Henkel has successfully closed the acquisition of the Professional hair business of Shiseido Company, Limited, headquartered in Tokyo. The business comprises leading professional hair brands, such as Sublimic and Primience, under the licensed Shiseido Professional brand.
The close collaboration between Henkel and Shiseido to further grow the business is reinforced through Shiseido retaining a 20 percent share in the business legal entity in Japan. The agreement to acquire the business was signed on 9 February 2022. In fiscal 2021, the acquired business reported sales of more than 100 million euros and employed around 500 people.
"We have a clear ambition to grow our Beauty Care business in Asia-Pacific. With this acquisition, we have become a leading player in the hair professional business in the region, which includes having a significantly stronger market position in Japan and China. At the same time, we have been able to establish our presence in South Korea and a leading position in Thailand," said David Tung, Regional President of Henkel Consumer Brands Asia.
Building on the success of Schwarzkopf Professional as a global expert in hair color innovation and trends, the addition of Shiseido Professional brings further capabilities and understanding in J-beauty premium hair and scalp care, anti-hair loss, styling and perm solutions.
"Bringing together two successful, premium brands creates an attractive portfolio and an exciting fusion of Western and Asian beauty expertise, innovation and education under one roof. This greatly enhances the value we offer to our hair salon partners and hairdressing community," said David.
Notably, a J-beauty innovation hub will be set up in Tokyo to develop and tailor products for consumers in Asia. It will serve as a base for new product development and ingredient formulation, for example, for both the Shiseido Professional and Schwarzkopf brands.
"We are building a strong innovation and growth platform to drive our hair professional business in Asia. In line with this, we will increase our customer-centricity, speed to market and further digitalize our business. Additionally, with people as a critical success factor, our priorities are to attract and retain the right talent, promote a diverse and inclusive culture, and nurture an entrepreneurial spirit, which is much needed in an increasingly dynamic and fast-changing world. We warmly welcome the Shiseido Professional team to our Henkel family," said David.
The Professional hair business of Henkel holds leading market positions in various international market segments. The business is among the top three 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.
Henkel operates globally with a well-balanced and diversified portfolio. The company holds leading positions with its three business units in both industrial and consumer businesses thanks to strong brands, innovations and technologies. Henkel Adhesive Technologies is the global leader in the adhesives market – across all industry segments worldwide. In its Laundry & Home Care and Beauty Care businesses, Henkel holds leading positions in many markets and categories around the world. Founded in 1876, Henkel looks back on more than 140 years of success. In 2021, Henkel reported sales of more than 20 billion euros and an adjusted operating profit of about 2.7 billion euros. The company employs more than 52,000 people globally – a passionate and highly diverse team, united by a strong company culture, a common purpose, and shared values. As a recognized leader in sustainability, Henkel holds top positions in many international indices and rankings. Henkel's preferred shares are listed in the German stock index DAX. For more information, please visit www.henkel.com.
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SOURCE Henkel Singapore