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Henkel Group Makes Major Acquisitions in Household and Cosmetics Markets

Strategic Insights

— 1 min read

The Henkel Group has announced the acquisition of Dial Corp. for $2.9 billion and Advanced Research Laboratories (ARL) for an undisclosed sum, significantly enhancing its U.S. position in the household and cosmetics markets. These moves are expected to stimulate additional activity in the new year and push Henkel into the top 10 of the U.S. cosmetics and toiletries market. The acquisitions will provide Henkel with a foothold in the U.S. household cleaning products market and a presence in the U.S. hairstyling products market.

Key Takeaways:

  • Henkel's acquisition of Dial Corp. gives the company a foothold in the U.S. household cleaning products market with a portfolio of well-established brands, including Purex laundry detergent, which has experienced double-digit growth over the past few years.
  • Dial's home care products business in the U.S. accounts for about $500 million at the manufacturer level and ranks sixth in this market, according to Kline's HOUSEHOLD CLEANING PRODUCTS USA market study.
  • The acquisition of ARL by Henkel is expected to grab the third position in the U.S. hairstyling products market, behind Procter & Gamble and Unilever.
  • ARL's U.S. sales were pegged at almost $70 million in 2002, led by the popular Got2B hair styling brand.
  • The combined sales of Dial and ARL are expected to exceed $600 million, coming mostly from soap and hair care products.
  • The acquisitions will likely push Henkel into the top 10 of the U.S. cosmetics and toiletries market.

Statistics:

  • $2.9 billion: the price of Henkel's acquisition of Dial Corp.
  • $500 million: the value of Dial's home care products business in the U.S. at the manufacturer level.
  • Around $70 million: the U.S. sales of ARL in 2002.
  • $600 million: the combined sales of Dial and ARL, expected to exceed this figure.
  • 6th: Dial's ranking in the U.S. household cleaning products market, according to Kline's HOUSEHOLD CLEANING PRODUCTS USA market study.
  • 3rd: Henkel's expected ranking in the U.S. hairstyling products market, behind Procter & Gamble and Unilever.
  • Top 10: Henkel's expected position in the U.S. cosmetics and toiletries market.

Sources:

  • Kline's HOUSEHOLD CLEANING PRODUCTS USA market study
  • Kline's COSMETICS & TOILETRIES USA market study
  • Henkel Group
  • PRNewswire
  • Kline & Company (http://www.klinegroup.com/)
  • Contact: Lenka Contreras, Group Director, Consumer Products of Kline & Company, +1-973-435-3407, lenka_contreras@klinegroup.com

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