FMCG giant Procter & Gamble, which is building the world'slargest shampoo plant in Urlati, near Ploiesti, is dropping itslocal division of professional products designed for hair salons,selling Wella Romania to Interbrands.
Interbrands, which has been distributing P&G products for 17years, thus takes over distribution of hair dye, shampoos and otherWella hair care products, System Professional and LondaProfessional to around 3,000 hair salons, i.e. a company with 12million euros in sales in 2008 and 70 employees.
The two companies did not reveal the value of thetransaction.
Wella does not have production operations in Romania, butP&G is investing in a 100 million-dollar greenfield project,which will allow Head & Shoulders, Pantene, and Wash & Goto be produced on the local market.
These are retail brands, whose shelf price is 3-4 times lowerthan that of Wella, System Professional, and Londa Professionalproducts, which are distributed exclusively in hair salons.
Wella Romania posted a 12 million-euro turnover in 2008, whichamounts to around 4% of P&G's consolidated business on theRomanian market. Sales of professional players can be put at lessthan 10-15% of P&G's Romanian hair care products market.However, Wella is the biggest player on its market segment, ofproducts created exclusively for distribution in hair salons.
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