Business

Henkel to buy Colgate-Palmolive's Australian laundry brands

Henkel logo Image copyright Henkel

German consumer goods giant Henkel is to buy Colgate-Palmolive's laundry brands in Australia and New Zealand for €220m ($245m; £157m).

Henkel will take over the firm's range of laundry detergents and pre-wash brands to become one of the biggest players in the Australian market.

The brands had sales of about €110m in the 2014 fiscal year, according to the firm.

Henkel already has a presence in Australia with beauty products.

It is the maker of recognisable products such as Schwarzkopf shampoo, while Colgate-Palmolive makes the likes of Cold Power, Dynamo and Fab detergents in the two countries.

The acquisition will also allow Henkel to introduce its laundry and home care products in the two countries, said Bruno Piacenza, Henkel's executive vice president of laundry and home care.

"This agreement is another step in the execution of our global strategy to selectively invest in attractive country category positions."

The company spent €1.8bn on acquisitions globally in 2014 to stay competitive in the consumer goods market.

It reported a 2.3% rise in net profit to €1.6bn last year, helped by growth in emerging markets.

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