Germany: Henkel to divest its retailer brands business in North America

Henkel, the Germany-based personal and household care giant, has announced it has entered into an agreement to sell its Retailer Brands business in North America to an affiliate of First Quality Enterprises, a manufacturer and distributor of hygiene, paper, and packaging products.

Henkel said it deemed the Retailer Brands business non-core within the Consumer Brands unit due to restricted opportunities for synergy and its “misalignment” with the integrated Consumer Brands strategy.

Commenting on the move, Henkel CEO Carsten Knobel said: “The divestment of our Retailer Brands business in North America marks the final step of our portfolio optimization measures which we announced in 2022. We are now focusing with a clear growth mindset on our branded business with technology-driven innovations offering more value for consumers”.

First Quality Enterprises chief financial officer Jim Dodge added: “This is an exciting time at First Quality. Adding detergents, fabric finishers and dishwash categories to our existing portfolio will enable us to offer a greater array of products to our customers and provide them with additional synergies, benefits and innovation. We look forward to partnering with our customers in providing the same high-quality products and services in this category as they have come to expect from First Quality in our existing portfolio”.

The transaction is subject to customary closing conditions, including regulatory approvals. Financial terms were not disclosed.

Sources: Henkel / First Quality