According to sources familiar with the matter, Procter & Gamble Co. (P&G) is contemplating options for its hair-care brand VS Sassoon’s operations in China, Bloomberg news. The consumer products giant has reportedly initiated discussions to gauge investor interest in the Chinese market, considering possibilities such as a full or partial stake sale.
The company is said to be seeking a valuation of approximately $1 billion for the VS Sassoon business in any potential deal. However, these deliberations are still ongoing, and there is no certainty that they will ultimately lead to a transaction.
P&G’s Chief Financial Officer, Andre Schulten, acknowledged that the company regularly examines its portfolio for opportunities to create value for shareholders. However, he declined to comment on specific deals or discussions.
P&G recently reported that its global shipment volumes in the first quarter were affected by challenges and volatility in the Chinese market. Schulten noted that they are operating in a market that is still experiencing contraction even after the impact of the COVID-19 pandemic. He also mentioned that the company does not anticipate a swift recovery in China.
VS Sassoon, originally founded by the renowned British stylist Vidal Sassoon, gained prominence in the 1960s for cutting the hair of notable actresses such as Mia Farrow and fashion icon Mary Quant. P&G acquired the Sassoon hair-care brand as part of its acquisition of Richardson-Vicks in the 1980s. Apart from the brand, Vidal Sassoon also sold his stake in the Vidal Sassoon salons and a range of hair-styling equipment, including blow dryers and irons.
As P&G explores its options for the VS Sassoon business in China, the outcome will shape the future trajectory of the brand in one of the world’s largest consumer markets.