Henkel executives signed an agreement to acquire the New York-based hair specialist from a fund managed by Private Equity Group of Ares Management Corporation.
Henkel says that the move will serve to not only grow its position in the professional hair care category, but also expands it position in one of the fastest growing hair care areas, products developed specifically for curly hair.
Henkel is targeting big industry trends
The trend for more personalised products has been impacting the industry more and more in recent years, as millennials and younger consumers increasingly demand products that are suited to their specific hair and skin care needs, a trend that Henkel is clearly tapping into with the DevaCurl acquisition
“The transaction is in line with Henkel’s strategy to strengthen its brand portfolio and exploit growth opportunities through targeted investments. DevaCurl is one of the fastest-growing Premium Professional hair care brands in the U.S. and will reinforce our growth momentum,” Stefan Mund, Regional Head Henkel Beauty Care, Hair Professional in North America, speaking exclusively to Cosmetics Design.
“With DevaCurl’s strong line-up of premium products for all types of curly and wavy hair, it is highly complementary to our existing Beauty Care portfolio, and offers strong innovation capabilities and growth potential.”
DevaCurl ahead of the curve
DevaCurl was one of the first brands of its kind, arriving on the US market in 1994, and has since been able to grow significantly, riding the wave of increasing consumer interest in products that are specifically developed for issues relating to curly hair.
Formulated as vegan and free from, the portfolio of DevaCurl products includes cleansers, conditioners, styling products, styling accessories, and treatments, serving to forge a comprehensive range of products that has helped push it into a premium positioning.
Currently the range is available in Ulta and Sephora outlets across the US, as well as several Direct to Consumer (D2C)e-commerce platforms, serving to generate anticipated 2019 in excess of $100 million, while securing jobs for around 200 people.
Targeting fast-growing categories
Executives at Henkel say that the acquisition serves as part of its strategy to acquire brands that are well positioned in fast growth cosmetic and personal care categories worldwide.
“DevaCurl is one of the fastest-growing ‘Premium Professional’ hair care brands in the US,” said Jens-Martin Schwärzler, Executive Vice President and 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.”