In April 2022, Henkel announced the decision to exit Russia following its attack on Ukraine and signed an agreement on selling its business activities in Russia to a consortium of local financial investors.

WHO: Founded in 1876, Henkel operates globally with a well-balanced and diversified portfolio. The company holds leading positions with its three business units in industrial and consumer businesses thanks to strong brands, innovations, and technologies.

WHY: The deal followed the German conglomerate's announcement to divest its operations in the country last year when Russia attacked Ukraine. Henkel joins the ranks of beauty businesses that have reduced or discontinued operations in response to the war.

IN THEIR OWN WORDS: “All acquirers have established and long-standing business relationships in Western countries and are not subject to EU or US sanctions,” Henkel said in a statement.

DETAILS:

• A consortium of investors acquiring the Henkel business activities in Russia for 54 billion rubles ($689.6 million) includes Augment Investments, Kismet Capital Group, and Elbrus Services.
• Henkel expects to see a net financial loss in the deal. They did not disclose the amount of losses but pointed out that the currency exchange effect would play a role in the transaction.
• All acquirers have established long-standing business relationships in Western countries and are not subject to EU or US sanctions.
• The agreed purchase price amounts to 54 billion rubles, which corresponds to around 600 million euros. 
• The relevant Russian authorities have already approved the transaction.