Henkel is merging its Laundry & Home Care and Beauty Care business units into one business unit: Henkel Consumer Brands.
 
The company will start preparations for the integration process immediately and aims to have the new organization in place by the beginning of 2023.
 
With the new business unit, Henkel will build one multi-category platform for growth, combining its consumer brands and businesses under one roof, including brands such as Persil and Schwarzkopf, also comprising the hair professional business.
 
“We will join forces in our consumer goods businesses to create one strong, integrated business unit as a foundation for future profitable growth. The integrated Consumer Brands business will bring significant benefits to Henkel, our shareholders, customers and teams and will be well-positioned to actively shape its future in a highly dynamic industry,” said Carsten Knobel, CEO of Henkel.
 
Knobel continued, “We are creating a multi-category platform with around 10 billion euros in sales. This will provide a broader basis to further optimize and shape our portfolio towards a higher growth and margin profile. We will also capture significant synergies and efficiency gains, allowing us to free up resources which will be used in part for targeted investments in our strategic priorities, such as innovation, sustainability, and digitalization. We will become an even more attractive employer of choice, offering bigger roles and growth opportunities in an exciting industry. In summary: I am convinced that this merger will take our Purposeful Growth Agenda to the next level.”
 
The merger is designed to drive growth and profitability for the consumer business and the company. This is also reflected in the new mid- to long-term financial ambition which Henkel provided: the company now aims for 3 to 4 percent organic sales growth, an adjusted EBIT margin of around 16 percent and mid- to high-single-digit percentage growth in adjusted earnings per preferred share (at constant exchange rates, including M&A).