BERLIN — The German consumer products group Henkel KG has reportedly made a bid of up to $5.2 billion for Wella AG. All dollar figures are calculated from the Euro at current exchange rates.
According to press reports Monday, industry sources said Henkel has offered between $68.60 and $78.40 for each Wella share. The takeover rumors boosted Wella’s share price, which jumped almost 55 percent to trade between $48.20 and $53.90 on Monday after closing at $38.61 Friday.
Wella denied the reports. “The managing board of Wella hasn’t received an offer by Henkel,” a spokeswoman said, adding, “At this point, such an offer would not appear to be favorable, given the current environment in the beauty market and the depressed valuation on the capital market.”
A Henkel spokeswoman declined to comment.
In 2001, the Henkel Group generated sales of $12.8 billion compared to the Wella AG’s $3.1 billion, but in terms of pure beauty sales, Wella is the 9th largest beauty company worldwide. Henkel ranks 16. Excluding its salon equipment sales, Wella’s 2001 beauty sales were estimated at $3 million, compared to Henkel’s estimated $2 billion.
Henkel is active in the mass market with consumer hair products, while Wella’s business is divided into professional, consumer, and cosmetics and fragrances.