Henkel, the German consumer goods giant, has announced the sale of its North American retailer brands business to an affiliate of First Quality Enterprises, LLC. The transaction marks the completion of Henkel’s portfolio optimization strategy for its consumer brands division, which was first outlined in February 2022.
Although financial details of the deal have not been disclosed, the sale is part of Henkel’s broader effort to streamline its product portfolio. Since the start of 2022, the company has sold or discontinued brands and operations totaling over €1 billion ($1.04 billion) in revenue. This strategic realignment aims to enhance Henkel’s focus on high-performing brands and core business segments while divesting non-strategic assets.
The latest divestment is expected to strengthen Henkel’s overall business strategy by concentrating resources on areas with higher growth potential and profitability. The move aligns with the company’s long-term vision of improving operational efficiency and reinforcing its market leadership in key consumer goods categories.
Henkel has been actively refining its global business structure, shedding underperforming or non-core brands to boost financial performance. The company remains a dominant player in the global consumer goods and industrial markets, known for its well-established brands in adhesives, beauty care, and home care products.
The buyer, First Quality Enterprises, LLC, is a private U.S.-based company specializing in manufacturing and distributing consumer products, including personal care and hygiene items. The acquisition of Henkel’s North American retailer brands business is expected to complement First Quality’s existing product portfolio and expand its market presence.
Henkel’s strategic reshaping of its consumer brands division is in line with broader industry trends, where companies are increasingly focusing on core competencies and streamlining operations to remain competitive. By divesting non-essential businesses, Henkel aims to strengthen its position in the global market and allocate resources to drive innovation and growth in key areas.
With this sale, Henkel has successfully completed its planned portfolio adjustments, positioning itself for sustainable growth and greater financial stability. The company continues to focus on advancing its consumer and industrial product lines, ensuring long-term profitability and enhanced shareholder value.
READ MORE: