The consumer goods and chemicals company Henkel is selling its private label business in North America to a subsidiary of First Quality Enterprises, LLC, based in Great Neck, New York. A corresponding agreement has been signed, Henkel recently announced.<\/p>\n
According to the company, the sale is part of the strategic portfolio optimization in its Consumer Brands division, which was announced in February 2022.<\/p>\n
Henkel states that the private label business includes products in the categories of laundry detergents, fabric softeners, and dishwashing detergents. The division generates revenues of \u20ac500 million and supplies various retail customers in the North American market.<\/p>\n
Henkel has identified the private label business as a non-core segment within its Consumer Brands division.<\/p>\n
According to the company, this segment offers only limited opportunities to realize synergies and holds little strategic importance for the integrated Consumer Brands platform.<\/p>\n
Henkel states that this transaction marks the completion of the final sale within the portfolio measures linked to the integration of its previously separate consumer businesses. The company considers this step a significant milestone in its portfolio optimization process within the Consumer Brands segment.<\/p>\n
Since early 2022, Henkel has sold or discontinued brands and activities totaling more than \u20ac1 billion in revenue.<\/p>\n
“Building a successful portfolio is a key element of our strategic agenda for holistic growth. Our active portfolio management, whether through acquisitions or divestitures, is a central lever to position our business for future success,” said Carsten Knobel, CEO of Henkel. The company is now focusing on brand-driven growth with technology-driven innovations, which, according to Knobel, create greater value for consumers.<\/p>\n