Consumer products group Procter & Gamble has finally closed a €4.65 billion deal to purchase hair care and beauty company Wella. In agreement with the tender offer launched at the end of April this year P&G will purchase the additional tendered Wella shares on 10 September.
The combined transactions will give P&G 98.1 per cent of Wella voting shares and 79.2 per cent of total company shares, the company said on Tuesday.
"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," said A. G. Lafley, chief executive of Procter & Gamble.
Wella and Procter & Gamble will now work together to evaluate opportunities for collaboration that will drive the business of both companies over the long term, increasing product innovations and additional growth opportunities. Procter & Gamble said in a statement on Tuesday that it expects a combined synergy potential of about €300 million for both companies.
Heiner Gurtler, chairman of the management board of Wella and managing director of Cosmopolitan Cosmetics, accepted an offer to work as president on Procter & Gamble's Global Leadership Council. In his new role, Gurtler will lead the Clairol and Wella Professional Businesses and Cosmopolitan Cosmetics. He will remain chairman of the Wella management board.
"With the support of Procter & Gamble and the expertise of Wella, we can become the global leader in the beauty business. I am committed to successfully advancing our business and proud of the unique culture, competence and know-how the Wella people contribute to this endeavor," said Gurtler.