Wella
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Company type | Subsidiary |
---|---|
Industry | Consumer goods |
Founded | 1880 |
Founders | Franz Ströher |
Headquarters | Darmstadt, Germany |
Area served | Worldwide |
Products | Hair care |
Owner | |
Website | www |
Wella
On October 1, 2021, Coty announced that it would sell an approximate 9% stake to KKR for $426.5 million. The deal reduces Coty's stake in the Wella, Clairol, OPI and ghd brands to around 30.6%.[3]
On November 8, 2021, Coty agreed to sell an approximate 4.7% stake in Wella to KKR in exchange for the redemption of approximately 56% of KKR's remaining convertible preferred shares in Coty. The deal reduces Coty's stake in Wella, Clairol, OPI and ghd to approximately 25.9%. KKR will continue to have a 2.4% ownership stake in Coty on an as-converted basis.[4]
On July 18, 2023, Coty agreed to sell an approximate 3.6% stake in Wella to investment firm IGF Wealth Management for US$150 million. Coty will retain a 22.3% stake in Wella with an implied valuation of approximately $900 million.[5]
History
Origins
Wella was founded in 1880 by Franz Ströher, a hairdresser from Saxony, Eastern Germany. The company originally made tulles, the base used for making wigs. In 1890, he invented the Tullemoid Waterproof, a technique that allowed the scalp to breathe. In 1894, he opened his first factory in Rothenkirchen, Germany and his sons Karl and George Ströher joined the business soon after.
In 1924, the Ströhers registered the name Wella at the German patent office. As
Nazi Germany and Cold War era
The company suffered under the National Socialist regime due to the Nazi's economic policy and their restrictions on raw-material supplies, along with wartime conditions. As Freemasons, the Ströher brothers were actively opposed to National Socialism. During the Second World War, the Wella plant in Apolda was used to manufacture ventilation systems and equipment for submarines, no longer producing their permanent wave machines and hair dryers.[6]
After World War II, the
In 1950, Wella introduced Koleston, the first hair balm designed to protect and nourish hair. In 1954, Hollywood icon Elizabeth Taylor appeared in Koleston advertising.
In the 1960s, the company launched Wella Privat, a salon-exclusive product range that let customers take professional-style products home for the first time. In the early 1970s, Wella introduced Perform a new perm product that allowed hairdressers to create Afro style looks. In 1972 they released Wella Balsam, the first shampoo specifically produced for retail sales. The advertising campaign featured the stars of TV show Charlie's Angels: Farrah Fawcett, Jaclyn Smith and Cheryl Ladd. In 1981, actress and model Brooke Shields appeared in an advertising campaign for Wella Balsam. Wella also launched For Men, their first ever product line exclusively for men.
Modern History
In 1995, Wella re-launched the Koleston line as Koleston Perfect. The new product included natural ingredients including fruit wax. 2002 saw the launch of Wella TrendVision, an annual presentation of Wella's haute couture hair collections. The event is now known as the International TrendVision Award, or ITVA: a global hairdressing competition.[7]
In 2003, Wella was acquired by Procter & Gamble (P&G), purchasing 77.6% of the company for $3.4 billion and paying a total of $5.7 billion including shares,[8] further expanding the group's beauty portfolio across Eastern and Western Europe, and Latin America.[citation needed]
Josh Wood became a Global Wella Professionals Colour Ambassador in January 2008 and in 2010 took on the full-time role as Wella Professionals’ Global Creative Director of Colour.[9] Eugene Souleiman currently serves as Global Creative Director for Wella Professionals.[9]
Wella founded Making Waves in 2011 – a programme that teaches hairdressing and life skills to disadvantaged young people. The program started in Brazil and has since expanded to include Romania, Cambodia, and Vietnam and has trained over 44,800 people.[10]
In 2014, Wella patented a new molecule called ME+.
In 2015, Coty announced that they would be buying 43 beauty brands from P&G for 12.5 Billion[13] and finished the merger in October 2016.[14] Bart Becht, former Coty Chairman and Chief Executive,[15] stated that the company would take over all of P&G's Wella management teams.
In 2020, the investment firm Kohlberg Kravis Roberts (KKR) announced a 60% acquisition of Wella from Coty, appointing Annie Young-Scrivner, the previous CEO of Godiva Chocolatier, as the new CEO of the company.[16] KKR, valuing Coty's Professional and Retail hair business, included are Wella, Clairol, OPI, and the ghd brands (placed together under the "Wella" moniker), at $4.3 billion, will be investing $1 billion directly as deleveragement alongside $2.5 billion in net cash proceeds when the Wella deal is closed, expected to be within the next six to nine months. The Wella business will issue around $1 billion of debt after the closing of the deal, distributing the proceeds to its shareholders.[17]
The deal closed on December 1, 2020, establishing the Wella Company as a stand-alone private entity based in Geneva, Switzerland.
in April 2022, Wella announced it had acquired the eco-haircare brand, Briogeo from Nancy Twine.[18]
Awards
Date | Publication & Award | Category | Brand & Product | Scope |
---|---|---|---|---|
April 2012 | Total Beauty 2012 Beauty Awards | Hair Gel/Rising Star Editor's Pick | Wella Professionals | North America |
March 2016 | behindthechair.com Stylist Choice Awards 2016 | Favorite Overall Professional Products Company | Wella Professionals | North America |
March 2016 | behindthechair.com Stylist Choice Awards 2016 | Favorite Lightener For Foil Highlights | Wella Professionals Blondor | North America |
March 2016 | behindthechair.com Stylist Choice Awards 2016 | Favorite Lightener For Balayage and Hand-Painted Highlights Winner | Wella Professionals Blondor Freelights | North America |
References
- ^ P&G confirms names of all 43 brands sold to Coty (article date July 13, 2016)
- ^ "Coty Completes Sale Of Wella Stake To KKR". Coty.com.
- ^ "Coty to sell 9% stake in Wella to majority owner KKR". reuters.com. October 2021.
- ^ "Coty To Sell Additional Stake In Wella To KKR In Deal Valued At Approx. $215.7 Mln". nasdaq.com.
- ^ "Coty Agrees to Sell $150M of Its Retained Wella Stake". Coty Investor Relations.
- ^ St. James Press. 2003.
- ^ In 2016, Taupe Color Contest - Wella Trendvision Award organized by Wella in Vietnam
- ISSN 0362-4331. Retrieved 2020-10-23.
- ^ a b "The Wella Professionals Heritage". www.wella.com.
- ^ "Unicef Making Waves Program | Wella Professionals". www.wella.com. Retrieved 2020-10-23.
- ^ "The Wella Professionals Heritage". www.wella.com. Retrieved 2020-10-23.
- ^ Rust, Rene. "Latest Innovations" (PDF). pg.com.
- ^ Cavale, Astrid Wendlandt, Siddharth (2015-07-09). "Coty buying P&G beauty business for $12.5 billion". Reuters. Retrieved 2020-10-23.
{{cite news}}
: CS1 maint: multiple names: authors list (link) - ^ "Coty Completes Merger with P&G Specialty Beauty Business". www.businesswire.com. 2016-10-03. Retrieved 2020-10-23.
- ^ "JAB chair Bart Becht quits in split with partners". Financial Times. 14 January 2019. Archived from the original on 2022-12-11. Retrieved 2020-10-23.
- ^ "Annie Young-Scrivner appointed as CEO of Wella Company". Premium Beauty News. Retrieved 2020-10-23.
- ^ "Coty Announces Strategic Transformation and Definitive Agreement with KKR on Wella". www.businesswire.com. 2020-06-01. Retrieved 2020-10-23.
- ^ "Wella acquires Briogeo to strengthen sustainable haircare portfolio". The Industry Fashion. 29 April 2022.