By Jiang Jingjing (China Daily)
Updated: 2007-10-10 09:07

Famous domestic hair care brands Slek, Maestro, S-Dew and Hair Song will not disappear, rather the brands and product lines will be largely enhanced and diversified, said a C-Bons senior official following the firm's recent acquisition by Beiersdorf AG.

Related readings:  Beiersdorf to enter mainland's hair care market

"The four existing brands will continue to operate and the management method and distribution network will not be changed," said Wu Yongnan, president of C-Bons Daily Chemical.

Wu is to become the CEO of the new company while Werner Brettschneider, Beiersdorf's newly appointed president for China, will be the chairman of the new entity's board.

Beiersdorf has acquired an 85 percent stake in C-Bons Daily Chemical, one of the leading players in China's hair care market. The transaction values C-Bons at 317 million euros on a cash- and debt-free basis.

Beiersdorf will pay 269.45 million euros for the 85 percent stake. It also has the option of acquiring the remaining 15 percent stake for a minimum price of 47.55 million euros.

The two parties will focus on developing more product lines under the existing brands to further increase the market share, Wu said, adding the new company has no immediate plans to create new brands.

The German personal care giant will contribute its core competencies in R&D, its innovation management and experience in worldwide brand management, Wu said.

Beiersdorf's subsidiary, Nivea (Shanghai) Co Ltd and the Wuhan-headquartered C-Bons will be independent companies. There is no plan at the moment to share resources, Wu said, adding Nivea may use C-Bons' distribution network to expand its presence in China.

Beiersdorf has successfully penetrated the Chinese skin care market with its Nivea and Eucerin brands, achieving double-digit annual sales growth in recent years.

C-Bons complements its skin care business with a wide array of hair care products ranging from shampoos to conditioners and hair styling products, along with a well-developed distribution network.

Beiersdorf CEO Thomas Quaas said: "We are pleased to have taken another significant step forward in the China market. C-Bons' hair care business is an ideal extension of our already successful Nivea business."