Henkel started the process of selling Russian business

The German manufacturer of cosmetics and household chemicals Henkel has launched the process of selling the Russian business and plans to complete it in the near future. This was announced by the Chairman of the Committee of Shareholders and the Supervisory Board of Henkel Simone Bajel-Tra, transmits Reuters.

“We have launched the sale process,” she said. Bazhel-Tra specified that the list of potential buyers was significantly narrowed after several persons became interested in buying the Russian asset.

According to Bazhel-Tra, there are 11 production sites in Russia, this market brought in about $1.06 billion annually. Henkel specified that the company has separated its business in Russia into an independent company. The cost of the deal was not specified.

Formerly “Kommersant” informedthat this new structure will start operating independently from January 1 under the name Lab Industries. According to the publication, in October the company filed an application with Rospatent for registration of a new trademark “L.A.B. Industries”.

According to Mikhail Burmistrov, General Director of Infoline-Analytics, the fair value of Henkel’s business in Russia is 600 million euros, however, in the current conditions, such transactions are closed at a significant discount. He specified that the company’s Russian assets could be sold for no more than 250-300 million euros.

Henkel began working in Russia in 1991. Now the company, according to the holding’s website, owns 12 offices and 11 factories in different regions of Russia. For example, factories in Perm, the Leningrad region (Tosno) and Engels produce Persil, Losk, Deni, and other detergents and cleaners. Factories in Kolomna, the Chelyabinsk and Ulyanovsk regions are engaged in the production of Ceresit building mixtures. The revenue of Henkel Rus LLC according to RAS in 2021 increased by 13.1% to RUB 95.14 billion, while net profit amounted to RUB 7.48 billion against RUB 7.84 billion. a year earlier.

After the start of the CBO in Ukraine, Henkel announced that he was preparing to leave Russia and Belarus, in March he stopped investing in Russian business, but did not stop production and operations. The document said that the exit from the Russian and Belarusian markets is estimated at 184 billion euros.