Henkel to merge two into one
In its annual results conference, Henkel announced plans to merge its business units Laundry & Home Care and Beauty Care into one business unit called Henkel Consumer Brands. It will be led by Wolfgang König, currently EVP of Beauty Care.
“With the new business unit, Henkel will build one multi-category platform for growth, combining its consumer brands and businesses under one roof, including many iconic brands such as Persil and Schwarzkopf, also comprising the hair professional business,” the company said.
Henkel Consumer Brands will have around €10 billion/year in sales. The merger is “designed to drive growth and profitability for the consumer business and the company”. Synergy gains are anticipated that will free up resources for targeted investments in strategic priorities like innovation, sustainability and digitalisation.
Integration is now beginning that new unit should be in place by the beginning of 2023 at the latest. Henkel expects to undertake portfolio measures such as divestments or discontinuation of non-core brands and businesses, and acquisitions in categories across the consumer space. The first measures relating to Beauty Care will be implemented this year.