Henkel to acquire majority stake in fast-growing direct-to-consumer (D2C) business

By: Trademagazin Date: 2020. 08. 25. 10:46

Henkel signed an agreement with Invincible Brands Holding, headquartered in Berlin, to acquire a 75 percent stake in a business comprising three fast-growing premium direct-to-consumer (D2C) brands: HelloBody, Banana Beauty and Mermaid+Me. Through this transaction, Henkel will significantly expand its D2C go-to-market footprint in Beauty Care and add strong digital capabilities in areas such as performance marketing, analytics and fast innovation.

The transaction comprises the three attractive brands HelloBody, Banana Beauty and Mermaid+Me, which are mostly sold in Europe. The brands offer premium beauty care products and they also address the growing trend of sustainable and clean beauty. HelloBody is active in the skin, body and hair care categories, Mermaid+Me focuses on hair care products. Banana Beauty offers decorative cosmetics such as lipsticks and eyeliners.

In the last twelve months as of June 2020, the businesses generated total sales of around 100 million euros and employed around 180 people, including an experienced incubator team with a strong track record of launching new D2C brands.

The three D2C brands capture more than 1.5 million active consumers and will significantly strengthen Henkel Beauty Care’s digital footprint.

The remaining 25 percent stake in the business will stay with the founders of Invincible Brands Holding – Bjoern Keune and Gennadi Tschernow – and private equity fund manager capital D. The founders and existing management team will remain onboard to further expand the existing as well as establishing new businesses.

“As part of our strategic framework for purposeful growth we pursue value-adding acquisitions to strengthen our businesses. This agreement is a proof point of how we consistently implement our strategy. It is also in line with our objective to strengthen our competitive edge in the area of digitalization by expanding our direct-to-consumer activities,” said Henkel CEO Carsten Knobel.

“With this acquisition we will strengthen our portfolio with fast-growing premium brands in attractive categories. Through 1:1 interactions with consumers we will gain valuable insights that will help us to create meaningful innovations for the entire retail business,” said Jens-Martin Schwärzler, Executive Vice President and responsible for Henkel’s Beauty Care business.

“I would like to thank our entire team at Invincible Brands, together with capital D, for executing a phenomenal growth plan over the past two years. With Henkel there is now an exciting opportunity to continue building on that. The combination of our direct-to-consumer and social media marketing skills with Henkel’s R&D, product knowledge and global footprint provides a winning formula. I am very much looking forward to working with the team at Henkel,” said Bjoern Keune, Co-Founder of Invincible Brands.