FRANKFURT/LONDON (Reuters) – Germany’s Henkel (HNKG_p.DE) will buy three U.S. beard affliction companies for 270 actor euros ($370 million) in banknote as the domiciliary articles and automated glues maker aims to strengthen its business with beard salons.
A logo of customer appurtenances accumulation Henkel is pictured afore its anniversary account appointment in Duesseldorf March 8, 2012. REUTERS/Ina Fassbender
Henkel, which already owns Schwarzkopf beard products, said the three brands – SexyHair, Alterna and Kenra – accept anniversary sales of about 140 actor euros, mostly through beard salons.
Henkel has been on the anchor for deals for some time, accepting adored up a 4 billion euro ($5.5 billion) war chest for purchases but acceptable targets accept been elusive.
The three brands are actuality awash by clandestine disinterestedness close TSG Customer Partners.
Mergers in the adorableness industry accept been about quiet in contempo months compared to the aliment and alcohol sectors, admitting ample deals accept included L’Oreal’s (OREP.PA) accretion in April of Chinese facial affectation cast Magic Holdings for about $845 actor and Revlon Inc’s (REV.N) $665 actor buy of Spanish salon beard affliction articles close The Colomer Accumulation in October.
Hair care, cosmetics and anatomy affliction brands are adorable because of their aerial margins, and are growing faster than packaged aliment brands, helped by their acknowledgment to arising markets.
Henkel, which already has salon-exclusive beard affliction brands such as Igora and Osis as able-bodied as retail brands including Syoss, agreed to pay about 1.9 times anniversary sales for the businesses, added than Revlon’s assorted of about 1.2 times sales for Colomer.
The all-around beard affliction market, account $77 billion, is accepted to abound by 6.6 percent per year on boilerplate until 2018, according to bazaar researcher Euromonitor International.
“The accretion will position Henkel as one of the arch companies in the world’s distinct better beard able market,” Henkel said in a statement. It beneath to acknowledge balance abstracts for the assets.
The family-controlled German accumulation is a abroad No.4 in the all-around beard affliction bazaar afterwards Procter & Gamble (PG.N), L’Oreal (OREP.PA) and Unilever (ULVR.L).
Henkel acquired about 15 percent of accumulation sales from beard affliction in the aboriginal quarter. It gets about bisected its acquirement from automated adhesives afterward the 3.7 billion euro accretion of National Starch in 2008.
Editing by Jane Baird and Louise Heavens