P&G sells Fekkai hair care brand

THE Procter & Gamble Company (P&G) has agreed to sell its Frédéric Fekkai high-end hair care brand and salons to Designer Parfums and LUXE Brands with the transaction likely to close in June. No financial details were disclosed.

Designer Parfums,  a private family-owned business dealing in perfumes and beauty products,  and LUXE Brands, a prestige beauty company, will form a joint venture to buy the Fekkai business which comprises a range of hair care products and seven salons in the United States. All the 255 employees of Fekkai salon operations are expected to be transferred to the new company.

The divesture is in line with P&G’s portfolio strengthening and simplification plans. As part of its plan to strengthen its portfolio and streamline the business, P&G announced in August 2014 that it will divest or discontinue 60% of the brands (roughly 100 brands) whose sales and profits have been declining over the past three years. Under the plan, the company said it aims to focus more on its biggest brands, including the Billion Dollar Brands like Tide, Pampers and Oral-B.