Henkel has signed an agreement to sell its business in Russia to a consortium of local financial investors as it finalises its exit from the country, announced last year following Moscow's invasion of Ukraine.
Augment Investments, Kismet Capital Group and Elbrus Services bought Henkel's business in Russia for around €600 million, the maker of Persil washing detergents and Pritt glue said in a statement, adding Russian authorities had approved the deal but a final closing was still pending.
All acquirers have established and long-standing business relationships in Western countries and are not subject to EU or US sanctions, Henkel noted.
Slower Growth In 2023
In March, the consumer goods giant said it expects slower industrial and consumer demand to curtail sales growth this year after price increases helped organic sales to jump 8.8% in 2022.
It 2022 results exclude sales in Russia since the beginning of the second quarter, the company said.
The maker of Schwarzkopf haircare products said it would focus on efficiency this year and aim to increase adjusted return on sales to 10% to 12% from 8.1% in 2022.
Recently, the company completed a restructuring process of its Adhesive Technologies unit, which the firm says will enable it to 'use scale and competence benefits even more efficiently'.
Going forward, the unit will focus on three business areas – Mobility & Electronics, Packaging & Consumer Goods, and Craftsmen, Construction & Professional – and nine underlying strategic business units.