GERMANY. Procter & Gamble (P&G) has finally closed on the stock purchase agreement with hair care giant Wella (which also owns Cosmopolitan Cosmetics), thereby officially becoming the new majority shareholder in the company. In accordance with the tender offer launched on 28 April this year, P&G will purchase the additional tendered Wella shares on Sept. 10. With these combined transactions, P&G will own 98.1% of Wella voting shares and 79.2% of total company shares, for a purchase price of €4.65 billion. Wella will continue to be a legally independent and publicly listed stock corporation.
The path to ownership has been far from smooth for P&G. Since setting the wheels in motion earlier this year, the company has had to overcome wrangles about the purchase price, see off rival bids from competitors and deal with motions filed by Wella shareholders which aimed to scupper the deal.
Nonetheless Heiner Gürtler, chairman of the management board of Wella AG and managing director of Cosmopolitan Cosmetics, has accepted an offer to serve as a president on Procter & Gamble’s Global Leadership Council. In this role, Gürtler will lead the Clairol and Wella Professional Businesses and Cosmopolitan Cosmetics. He will remain chairman of the Wella management board.
“This is a major milestone for Procter & Gamble, adding a new dimension to our global beauty business,” commented P&G chairman, president and chief executive A.G. Lafley. “This deal brings together two of the leading companies in the hair care industry and gives P&G access to the global professional hair care market where we have a minimal presence today. Additionally, Wella’s retail hair and fragrance business will complement and strengthen Procter & Gamble’s global beauty portfolio. We are pleased Dr. Gürtler has formally accepted a position with Procter & Gamble and look forward to working with the Wella leadership team to continue building on the combined success of Wella and Procter & Gamble.”
“This deal signifies a new era both for Wella and for me personally,” added Gürtler. “I look forward to working collaboratively with Procter & Gamble and to exploring the opportunities it brings to our beauty businesses. We look forward to learning from each other and capitalizing on each other’s strengths. With the support of Procter & Gamble and the expertise of Wella, we can become the global leader in the beauty business.”
The deal is expected to produce combined synergies of around €300 million, mainly as a result of lower manufacturing costs and administrative consolidation.
