Wella’s Not Welcome at L’Oréal

L'Oréal's not interested in what Procter & Gamble's selling. According to a report, the world's largest hair care company won't bid on P&G's Wella business. Speaking to a reporter of German daily Handelsblatt, Nicolas Hieronimus, the head of L'Oréal's luxury division, said his company would pass on Wella.


“As global market leader, we are already very well established among hair salons with our own brands,” he explained. “We have an optimal brand portfolio today. You can see that from the fact that we are growing 1 1/2 times as fast as the market worldwide. Still, we always look at new opportunitie.”


And yet, P&G's decision to shed dozens of non-core brands has captured the attention of many rivals. For example, Henkel is reportedly interested in P&G's hair care unit, which includes the Wella and Clairol brands. The unit is said to be worth about $7 billion based on annual earnings before interest, tax, depreciation and amortisation (EBITDA) of around $500 million. Meaanwhile, Revlon, Coty and yes, L'Oréal, are said to be eyeing other portions of P&G's beauty business.