P&G seen to sell Wella

PROCTER & Gamble Co., the world’s largest consumer-products company, is exploring a sale of its Wella hair care business, sources said on Friday, cautioning that no final decision had been taken.

Reuters reported Nov. 28 that P&G was working with Goldman Sachs on the potential deal, which would value Wella at about €5 billion ($6.2 billion).

A P&G spokesman said the company did not comment on rumor or speculation, while Goldman Sachs was not immediately available to comment.

In August, P&G announced a plan to divest as many as 100 of its slower-selling brands that account for about 10% of its revenue. Last month, the company said it would sell the Duracell battery brand to Warren Buffett’s Berkshire Hathaway Inc. for $4.7 billion in stock.

That move came after P&G had already sold the bulk of its pet food business to Mars Inc. and Spectrum Brand Holdings Inc.

In the hair care segment, P&G also owns Clairol, which it bought from Bristol-Myers Squibb for $4.95 billion in 2001, and Vidal Sassoon. Prospective buyers could include Unilever and Henkel, which made an informal approach for Wella in 2002 before it was subsequently sold to P&G in 2003 for 6.5 billion euros ($8.1 billion).

Under pressure from shareholders including activist investor William A. Ackman, who took a stake in the consumer products company in 2012, P&G has undertaken a multi-year restructuring program, cutting thousands of jobs and taking steps to streamline operations, launch new products and expand into fast-growing emerging markets.

P&G is also thought to be exploring options for Braun, which makes electric razors and toothbrushes and which it acquired as part of its $57 billion purchase of Gillette in 2005, sources familiar with the matter also told Reuters. It could also look to sell some of its fragrance business.