WWD Digital Daily

Henkel Inks Deal to Purchase DevaCurl

● The acquisitio­n helps Henkel strengthen its position as a dominant self-care business.


Henkel’s personal-care portfolio is growing. And this time it’s adding products for curly- and wavy-hair to the mix.

The Düsseldorf, Germany-based consumer-goods company has agreed to purchase DevaCurl — the hair-care business that sells vegan and “free from” hair-care products, like cleansers, conditione­rs, styling accessorie­s and treatments for curlyhaire­d girls — for an undisclose­d amount.

“This is a match made in heaven,” Robert Schaeffler, chief executive officer of DevaCurl, told WWD. “What Henkel gives us is a global platform to really take the great products and the innovation and the culture and the community that we have, across the world. With a world-class organizati­on like Henkel, that is available in 125 countries, we can supercharg­e that global curl rollout.”

Henkel, which is split into three categories — adhesive technology, beauty, and laundry and home care — also benefits from the deal.

“The acquisitio­n is part of our strategy to expand our position in attractive and fast- growing markets and categories,” Hans Van Bylen, ceo of Henkel, said in a statement. “It will complement and further strengthen our hair profession­al business.”

Stefan Mund, regional head of Henkel beauty care, North America, added that the acquisitio­n allows Henkel to tap into the curly-hair market.

“DevaCurl is a category-leading, high growth premium profession­al brand with a complement­ary portfolio to Henkel’s,” he said.

That portfolio includes brands like Nature Box, Schwarzkop­f hair care, Dial soaps and Sexy Hair. In July, Henkel acquired a 51 percent stake in eSalon, a custom hair color business.

Meanwhile, DevaCurl is one of the fastestgro­wing profession­al hair care brands in the U.S., said Jens-Martin Schwärzler, executive vice president responsibl­e for Henkel’s beauty-care business.

“The brand is a perfect fit for our beauty care business and will reinforce the growth momentum of our hair profession­al portfolio in the world’s largest hair profession­al market,” Schwärzler said.

DevaCurl was founded in 1994’s New York City by two stylists. The company has changed hands a number of times to its current owner, Ares Management Corporatio­n, a private equity group.

In the beginning, the company that now employs roughly 200 people, had about six stylists, Schaeffler said.

“It literally started with the two founders shipping products in their own cars and a couple thousand dollars in the first year,” he said. “It was hand delivery at the beginning. Now it’s a dominant player in this space that is distribute­d to profession­al salons, as well as Sephora and Ulta. It’s really been a beautiful journey for this brand. They’ve hit milestone after milestone in the last 25 years.”

That includes revenues, which are on track to be around $100 million in 2019. In the future, Schaeffler said the company’s two main objectives are to expand internatio­nally and to add “Deva Dudes” to its clientele.

“The biggest thing for us is looking at going global with this brand,” he said. “That’s a huge focus for us. There’s a huge demand from curly girls —and guys — across the world.”

As part of the terms of the agreement, DevaCurl will continue to operate as its own separate entity after the acquisitio­n, with the same management team and its own independen­t e-commerce business. Schaeffler said he expects the deal to close before the end of the year.

He added that, in addition to the

U. S., DevaCurl already had a substantia­l business in Brazil. But with Henkel, the company plans to expand even further abroad, including parts of

Africa and Europe.

“A lot of these markets have no curly market,” Schaeffler said. “With our partners we’re planning on creating that curly segment, just like we did here 25 years ago.”

 ??  ?? DevaCurl is the hair-care brand for curly-haired girls.
DevaCurl is the hair-care brand for curly-haired girls.

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