Henkel has signed an agreement to acquire Shiseido's Asia-Pacific Hair Professional business. Shiseido will retain a 20% share in the legal entity in Japan to support business growth through a partnership with Henkel.
Henkel chief executive Carsten Knobel said the acquisition is part of the company's strategic growth plan.
"This transaction is a step-change for Henkel's Hair Professional business," Mr Carsten said. "By expanding our professional business in Asia-Pacific, we will become one of the leading players in this highly dynamic region with attractive future growth potential. This move will also further strengthen our professional hair business, which has already shown a very strong development in the past years and will be an integral part of our future consumer brands business unit."
The transaction marks another step towards strengthening Henkel's Hair Professional business.
In 2014, Henkel acquired three US companies: Sexy Hair, Alterna and Kenra.
In 2017, Henkel bought Nattura Laboratorios and the North American Hair Professional business of Shiseido.
Wolfgang König, executive vice-president of Beauty Care at Henkel, said the new Asian acquisition would significantly boost the company's market position in Japan and China.
"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," Mr König said. "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."
Henkel is among the top three beauty companies in the world with a broad portfolio of hair care, hair styling and colouration brands exclusively for hairdressers, such as Schwarzkopf Professional, Bonacure, Igora Royal and Authentic Beauty Concept.