German consumer goods company Henkel has signed an agreement to acquire a 51% stake in the Los Angeles-based hair colouring business, eSalon.com.
The acquisition will strengthen the Schwarzkopf maker's hair colour product portfolio and expand its digital business.
'Made-To-Order' Hair Colour
eSalon.com offers fully customised, professional home hair colour that is shipped directly to the customer's doorstep.
In 2018, the business generated sales of around $30 million (€26.9 million), mainly in the US market, Henkel said in a statement.
It employs around 120 people and has processed more than six million orders so far.
'A Perfect Fit'
Henkel's executive vice-president, Jens-Martin Schwärzler, said, "With this joint venture, we aim to grow our core business and at the same time expand in an innovative digital business model.
"The strong eSalon business, which addresses the growing trend of personalisation in beauty care, will be a perfect fit," Schwärzler added.
The Deal
Henkel will retain the founders and management team of eSalon.com after the transaction is complete, it said.
Both parties did not disclose any financial details of the transaction. The agreement is subject to customary closing conditions and regulatory approvals.
© 2019 European Supermarket Magazine – your source for the latest retail news. Article by Dayeeta Das. Click subscribe to sign up to ESM: European Supermarket Magazine.
