Sale of the private label business in North America
The consumer goods and chemicals group Handle sells its business with Private labels in North America to a subsidiary of First Quality Enterprises, LLC, based in Great Neck, New York. Henkel recently announced that an agreement has been signed to this effect.
According to Henkel, the sale is part of the strategic portfolio optimisation in the Consumer Brands division announced in February 2022.
According to Henkel, the private label business includes products in the laundry detergent, fabric softener and dishwashing categories. According to the press release, the division generates sales of 500 million euros and supplies various retail customers in the North American market.
Portfolio optimisation process
The private label business has been identified as a non-core business within the Consumer Brands business sector, writes Henkel.
According to the company, there are only limited opportunities to realise synergies in this business. The strategic importance of the integrated Consumer Brands platform is also limited.
According to Henkel, the transaction is the final sale as part of the portfolio measures associated with the merger of the formerly separate consumer businesses. According to Henkel's press release, this transaction is of great significance for Henkel as part of the portfolio optimisation process within the Consumer Brands business.
In total, the Group has now sold or discontinued brands and activities with a total turnover of just over 1 billion euros since the beginning of 2022.
„Shaping a successful portfolio is a key element of our strategic agenda for holistic growth. Our active portfolio management, whether through acquisitions or divestments, is a key lever in making our business successful for the future,“ said Carsten Knobel, CEO of Henkel. The company is now focussing on its brand business with technology-driven innovations with a clear focus on growth. According to Knobel, these create more value for consumers.