Henkel has signed a deal with Colgate-Palmolive to buy its entire range of laundry detergents in Australia and New Zealand. This includes Cold Power, Dynamo, Fab, Sard and Kindness. The brands generated sales of NZ$166 million in the last financial year.
Executive vice president of laundry and home care Bruno Piacenza says the company is strategically investing in attractive country category positions.
“With this transaction we will cover an attractive regional white spot in our core category, laundry care, with successful brands,” Piacenza says.
“The acquired business also provides a platform to further expand our laundry and home care business by leveraging our broad portfolio of leading brands and innovations in these markets.”
Henkel aims to establish a leading position in the Australian and New Zealand laundry market.
The businesses were purchased for NZ$333 million (220 million euros) and will be financed in cash.
The transaction is expected to close in the third quarter of 2015.
Henkel already has a presence in New Zealand and Australia, with its beauty care businesses like Schwarzkopf.
The company was founded in 1876 in Aachen, Germany and now employs almost 50,000 people to manage well-known brands such as Persil.
Its headquarters are in Dusseldorf, Germany.
It had sales of NZ$24.9 billion (16.4 billion euros) and a profit of NZ$3.9 million (2.6 billion euros) in the fiscal year in 2014.