The German multinational Henkel, which already owns Schwarzkopf Professional, will buy three U.S. hair care companies for $370 million in cash as the household to strengthen its business with hair salons.
The three brands –Sexy Hair, Alterna and Kenra– have annual sales of about $190 million, mostly through hair salons, and are being sold by private equity firm TSG Consumer Partners.
Henkel, which already has salon-exclusive hair care brands such as Igora, Indola and Osis, agreed to pay about 1.9 times annual sales for the businesses. The global hair care market, worth $77 billion, is expected to grow by 6.6 percent per year on average until 2018, according to market researcher Euromonitor International.
“The acquisition will position Henkel as one of the leading companies in the world’s single biggest hair professional market,” Henkel said in a statement.