German consumer goods firm Henkel’s Indian arm has received its shareholders’ nod to sell its fastest-growing business unit in India – the haircare products business housed under the Schwarzkopf Professional Division. The division is to be sold to Henkel Adhesives Technologies India Pvt. Ltd., a wholly owned company of Henkel AG that is currently into adhesives business.
“Against the background of the current economic and competitive environment, it has become imperative to restructure the company and strengthen its financial position. The sale of the company’s haircare division will lower the debt level of Henkel India Ltd.,” the company disclosed. The transaction is expected to be concluded before the end of April and would mark the German parent slicing off the businesses it wants to retain in India, ahead of dissociating itself from the listed subsidiary.
Source: http://www.vccircle.com
