Henkel to acquire a 75 percent stake in the company that owns the fast-growing premium direct-to-consumer brands: Hello Body, Banana Beauty and Mermaid+Me

Hello Body is active in the skin, body and hair care categories.

  • Further expanding digital D2C platforms in the beauty segment
  • Leveraging 1:1 relationships to capture superior consumer insights
  • Adding strong digital capabilities and unique brand building expertise

(PRESS RELEASE) DÜSSELDORF, 31-Jul-2020 — /EuropaWire/ — German chemical and consumer goods company Henkel (ETR: HEN3) has announced it has reached an agreement with Berlin based Invincible Brands Holding for the acquisition of 75 percent of the business that controls three fast-growing premium direct-to-consumer (D2C) brands: Hello Body, Banana Beauty and Mermaid+Me. The investment will allow Henkel to significantly expand its D2C go-to-market footprint in Beauty Care and to add strong digital capabilities in areas such as performance marketing, analytics and fast innovation.

The transaction comprises the three attractive brands Hello Body, Banana Beauty and Mermaid+Me, which are mostly sold in Europe. The brands offer premium beauty care products and they also address the growing trend of sustainable and clean beauty. Hello Body is active in the skin, body and hair care categories, Mermaid+Me focuses on hair care products. Banana Beauty offers decorative cosmetics such as lipsticks and eyeliners.

In the last twelve months as of June 2020, the businesses generated total sales of around 100 million euros and employed around 180 people, including an experienced incubator team with a strong track record of launching new D2C brands.

The three D2C brands capture more than 1.5 million active consumers and will significantly strengthen Henkel Beauty Care’s digital footprint.

The remaining 25 percent stake in the business will stay with the founders of Invincible Brands Holding – Bjoern Keune and Gennadi Tschernow – and private equity fund manager capital D. The founders and existing management team will remain onboard to further expand the existing as well as establishing new businesses.

“As part of our strategic framework for purposeful growth we pursue value-adding acquisitions to strengthen our businesses. This agreement is a proof point of how we consistently implement our strategy. It is also in line with our objective to strengthen our competitive edge in the area of digitalization by expanding our direct-to-consumer activities,” said Henkel CEO Carsten Knobel.

“With this acquisition we will strengthen our portfolio with fast-growing premium brands in attractive categories. Through 1:1 interactions with consumers we will gain valuable insights that will help us to create meaningful innovations for the entire retail business,” said Jens-Martin Schwärzler, Executive Vice President and responsible for Henkel’s Beauty Care business.

“I would like to thank our entire team at Invincible Brands, together with capital D, for executing a phenomenal growth plan over the past two years. With Henkel there is now an exciting opportunity to continue building on that. The combination of our direct-to-consumer and social media marketing skills with Henkel’s R&D, product knowledge and global footprint provides a winning formula. I am very much looking forward to working with the team at Henkel,” said Bjoern Keune, Co-Founder of Invincible Brands.

Stephan Lobmeyr, Co-Founder of capital D, added: “Two years ago we identified the disruptive nature and strength of the business model of Invincible Brands, a pioneer social media marketing and first-class brand incubator. We have supported Bjoern, Gennadi and the team to grow and conquer this nascent market and are really pleased that Henkel’s investment validates the strengths of the brands and the concept and that we will continue to be part of the business alongside Henkel.”

The agreement is subject to customary closing conditions, including regulatory approvals.

About Invincible Brands
Invincible Brands is a platform creating direct to consumer brands which pioneered innovative and data driven social commerce and performance marketing in Europe. It was founded in November 2015 in Berlin by Bjoern Keune and Gennadi Tschernow. Invincible Brands has a highly differentiated approach to marketing and a fast product innovation process leveraging deep consumer insights from millions of weekly client and influencer interactions as well as its 250 employees across all brands.

About capital D
capital D is a next-generation private equity fund manager focused on disruptive mid-market businesses across Europe. capital D invests at the intersection of macro, technological and behavioral trends, in businesses which will be the winners of the disruption economy. capital D adds purpose and agility to traditional investment lenses and believes companies with those characteristics are better equipped to succeed. capital D understands “what’s next” through an ecosystem comprising experts in digital, innovation and sustainability which creates unique investment opportunities.

Media contacts:

Lars Witteck
Head of External Communications
Headquarters, Düsseldorf/Germany

Wulf Klüppelholz
Head of Media Relations
Headquarters, Düsseldorf/Germany

Jennifer Ott
Corporate Media Relations
Headquarters, Düsseldorf/Germany

SOURCE: Henkel AG & Co. KGaA


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