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    Breaking News

    Henkel Takes Stake in eSalon

    Buys 51% of customized hair color company based in Los Angeles.

    Henkel Takes Stake in eSalon
    eSalon offers personalized color for consumers to use home.
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    07.26.19
    Henkel has acquired a 51% stake in eSalon.com LLC, the Los Angeles-based customized hair color company. Launched in 2010, the company’s core offering is individually customized hair coloration for at home application. Through this joint venture, Henkel says it will further strengthen its leading hair coloration portfolio and expand its digital business. 
     
    Details of the accord were not disclosed.

    eSalon creates customized hair color for at home application and is available as a one-time purchase or as a subscription. The company has capabilities in individualized production (“batch-of-1”) for a truly personalized at-home color experience. In fiscal 2018, the business generated sales of around $30 million, mainly in the US market, according to Henkel. Currently, eSalon employs approximately 120 people and has its main site including production, office and warehouse in Los Angeles. 

    “We continue to drive the execution of our strategy by strengthening our portfolio and our digital capabilities through targeted investments. With this joint venture, we aim to grow our core business and at the same time expand in an innovative digital business model. The strong eSalon business which addresses the growing trend of personalization in beauty care will be a perfect fit. We expect to gain valuable consumer insights that will also help us to create meaningful innovations for our classical retail consumers”, said Jens-Martin Schwärzler, EVP and responsible for Henkel’s Beauty Care business. “The founders and existing management team will stay on board and join forces with Henkel to further accelerate the future growth of the business.” 

    “Through our partnership with Henkel, we look forward to accelerating our marketing efforts and enhancing our product offering for our current and future clients”, said eSalon CEO Francisco Gimenez. 

    The parties agreed to not disclose any financial details of the transaction. The agreement is subject to customary closing conditions, including regulatory approvals. 
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