P&G to weigh US$1 billion sale of VS Sassoon’s China business
PROCTER & Gamble (P&G) is weighing options for the Chinese operation of its hair-care brand VS Sassoon, sources with knowledge of the matter said.
The consumer products giant has started gauging preliminary investor interest for the VS Sassoon business in the world’s second-largest economy, according to the sources. Options under consideration include a full or partial stake sale, they said.
P&G is seeking a valuation of about US$1 billion for the asset in any deal, the sources said, asking not to be identified discussing confidential information. Deliberations are ongoing and there’s no certainty they will result in a transaction.
“We’re constantly looking at our portfolio, both acquisitions and potential options to create value for our shareholders,” chief financial officer Andre Schulten said, declining to comment on specific deals.
On Wednesday, P&G said the company’s first-quarter global shipment volumes were weighed down by weakness and volatility in China.
“We’re operating within a market that is still contracting post-Covid,” Schulten said on an earnings call. “We don’t expect the China recovery to be quick.”
VS Sassoon was founded by the late British stylist Vidal Sassoon, who gained recognition in the 1960s after cutting the hair of actresses including Mia Farrow and fashion icon Mary Quant. P&G acquired Sassoon’s hair-care brand through its purchase of Richardson-Vicks in the 1980s. Sassoon also sold his interest in the Vidal Sassoon salons and a line of blow driers, irons and other hair-styling equipment. BLOOMBERG
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