German cosmetics manufacturer Beiersdorf confirmed this weekend its interest in buying US haircare product range Clairol.
The brand has been put up for grabs by parent company Bristol-Myers Squibb, which is seeking to focus on its pharmaceuticals business. Meanwhile, the auction has already attracted the attention of global giants Procter & Gamble, Unilever and L’Oréal, as well as the new suitor’s German rivals Henkel and Wella [WAMN: 25-Jan-01].
Beiersdorf revealed over the weekend that it is carrying out due diligence on Clairol in preparation for a bid. In order to raise the 5 billion euros demanded by Bristol-Myers, the German company will have to add an approved capital increase of 3 billion euros to its war chest of 400,000–500,000, with the rest coming from other sources.
Beiersdorf’s interest is thought to have the support of major shareholders Tchibo and Allianz, who see the purchase of Clairol as a means to raise the group’s presence in the US.
News Source: Handelsblatt (Germany)