Sale of the private label business in North America
The consumer goods and chemicals group Henkel is selling its private label business 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 optimization 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 optimization 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 realize 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 related to the merger of the formerly separate consumer businesses. According to Henkel's press release, this transaction is of great importance for Henkel as part of the portfolio optimization 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 EUR 1 billion 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 to make our business successful for the future," said Carsten Knobel, CEO of Henkel. The company is now focusing on its brand business with a clear growth orientation and technology-driven innovations. According to Knobel, these create more value for consumers.