Following the sale of its Duracell battery unit to Warren Buffett, Procter & Gamble is casting its eye on its beauty businesses as it looks to unload 80 to 100 non-core product lines. First up is said to be Wella hair care, as first reported by Reuters.
Wella, which includes both professional and retail hair care products, could fetch at least $7 billion. Goldman Sachs has reportedly been tapped to explore the sale, but was not available for comment. Henkel, which had expressed interest in Wella when P&G snapped it up for $4.9 billion in 2003, leads the list of suitors. Industry sources don’t rule out parceling out the Wella business, especially since the professional business is strong in Europe. Although P&G brands dominate the U.S. mass market hair care landscape, Wella never gained significant traction in the crowded retail hair business.
Last year P&G revealed plans to divest brands to focus on its powerhouses like Tide and Pampers. P&G did not comment on the reports Wella is on the block. Its Braun division could be next to go, sources said, as well as some of its fragrance holdings.