Wella
Wella Company is a multinational beauty corporation specializing in hair care, coloring, styling, and related products for professionals and consumers, founded in 1880 by Franz Ströher in Rothenkirchen, Germany, initially producing hair tulle for wigs.[1] The company introduced the Wella brand name in 1924, derived from the German word for "wave," as demand for wigs declined and focus shifted to innovative hair waving and perming solutions.[2] Over its history, Wella has pioneered several industry firsts, including the Koleston cream hair colorant in 1950, the first one-step hair coloring process through its Clairol subsidiary, and advancements like motorized hair dryers in the 1930s and the ME+ hair dye molecule in 2014.[2][1] Acquired by Procter & Gamble in 2003 and later integrated into Coty's portfolio in 2016, Wella was divested to become an independent entity in 2020, headquartered in Geneva, Switzerland, and New York City, USA, with a portfolio encompassing iconic brands such as Wella Professionals, O·P·I, ghd, Briogeo, Nioxin, Sebastian Professional, and Clairol.[1][3] As a leader in the global beauty industry, Wella Professionals holds the position of the number one salon color brand worldwide based on market studies, emphasizing technical innovation through its Central Research Centre established in 1957 and supporting hairdressers' creativity via product lines like Color Touch and Ultimate Repair.[2][3] The company's evolution reflects a commitment to empirical advancements in hair science, enabling customized solutions that prioritize performance and durability in professional applications.[2]History
Founding and Early Development
Franz Ströher founded the company in Rothenkirchen, Germany, on July 1, 1880, registering it as Franz Ströher-Rothenkirchen at the Auerbach district court for the production and distribution of artificial hair, primarily tulles used as bases for wigs.[4] Initially focused on wig-related materials in the Saxon Vogtland region, the business catered to the demand for hairpieces prevalent in late 19th-century European fashion.[4] In 1908, Ströher's sons, Karl, a merchant, and Georg, a hairdresser, joined the firm, significantly influencing its trajectory over the subsequent decades.[4] By 1904, the company had expanded production capacity with a larger plant in Rothenkirchen, emphasizing waterproof materials like "Tullemoid" for durable wigs and hairpieces.[4] However, the 1920s shift toward shorter bobbed hairstyles reduced demand for wigs, prompting the brothers to pivot toward hairdressing tools and permanent wave technologies.[2][4] The family registered the "Wella" trademark in 1924, deriving from the German word for "wave" to reflect its emerging focus on waving techniques, followed by the 1927 launch of the Wella brand for permanent wave machines and salon equipment.[2][4] By 1930, the enterprise restructured as Franz Ströher AG with 250,000 marks in capital and approximately 150 employees, beginning diversification into cosmetic hair products such as dyes and treatments.[4] This era marked the transition from artisanal wig production to industrialized hair care innovation, setting the foundation for broader market expansion.[4]Pre-War Expansion and Innovations
Following the decline in wig demand during the 1920s, driven by the rise of shorter hairstyles such as the bob, the company shifted focus to permanent wave equipment and professional hair care products. In 1927, it launched the Wella brand, introducing perming machines, hair dryers, and salon equipment, alongside the Kolestral hair treatment for conditioning.[4][5] The year 1930 marked the company's 50th anniversary and a major expansion phase, with incorporation as Franz Ströher AG under a capital of 250,000 Reichsmarks and approximately 150 employees. This period saw the establishment of training courses for hairdressers and the launch of Wella News, a publication to support professional development. Sales expanded internationally, including entry into the United States market in 1931. Innovations included the development of the Wella Junior, the world's first portable perming device, and early hair dryers tailored for salon use.[4][5][6] Throughout the 1930s, product innovation accelerated with the introduction of bleaching agents like Blondor, hair coloring lines such as Wellapon and Wellaton, and Wella Percol Liquid for perming. Infrastructure grew via a new plant in Plauen, Vogtland, and the establishment of subsidiaries forming an international sales network by 1938. Employee numbers expanded significantly, reaching over 800 by the eve of World War II, reflecting robust pre-war growth amid rising demand for professional hair services.[4][5]Post-War Growth and International Reach
Following the end of World War II in 1945, Wella restructured amid the expropriation of its factories in Apolda and Rothenkirchen by Soviet authorities, with the Ströher family and a small team of 12 employees reestablishing operations as Ondal GmbH in Hünfeld, Hesse, West Germany.[4] By 1950, the company was formally registered as Wella AG with central management in Darmstadt, marking a pivotal recovery phase; that year, it launched Koleston, the first cream-based hair colorant with conditioning properties, which achieved rapid commercial success and helped drive turnover to DM 10 million.[4] This innovation addressed post-war demand for professional-grade hair coloring, enabling salons to offer gentler, more effective treatments amid economic reconstruction in Europe.[1] International expansion accelerated in the early 1950s as Wella established production facilities to bypass trade barriers and localize manufacturing, beginning with plants in Chile, Italy, and the Netherlands in 1952, followed by entry into African markets in 1953, and Australia and Brazil in 1954.[4] These moves reflected a strategic focus on developing economies, where Wella pursued aggressive market penetration despite opposition to its inclusion of Third World countries in global trade policies, building an extensive distribution network and larger overseas plants to mitigate currency fluctuations and tariffs.[7] By the 1960s, the company extended into Asian and Pacific regions, solidifying its multinational presence through localized production that supported export growth and adaptation to regional preferences.[4] In parallel, domestic advancements bolstered global scalability; in 1957, Wella opened its Central Research Centre in Darmstadt, Germany, which became a hub for developing exportable innovations like improved permanent waves and styling aids tailored for international salons.[2] Meanwhile, the Eastern German operations, severed by partition, rebranded as Londa in Rothenkirchen by 1956—retaining the Wella logo initially—before establishing an independent trademark in 1959, allowing Wella AG to concentrate on Western markets without legal entanglements.[1] This bifurcated structure, combined with product-led growth, positioned Wella as a leader in professional hair care by the late 1960s, with manufacturing and sales spanning Europe, the Americas, Africa, and emerging Asia-Pacific hubs.[7]Acquisition by Procter & Gamble
In March 2003, Procter & Gamble (P&G) announced an agreement to acquire a controlling stake in Wella AG, a German hair care company headquartered in Darmstadt, from its majority shareholders, the Heinemann family.[8] The initial cash purchase of approximately €3.2 billion ($3.4 billion at the time) secured 77.6% of Wella's voting shares, with the total enterprise value estimated at up to €6.5 billion including a subsequent tender offer for minority shares.[9] This move positioned P&G to expand its presence in the professional and salon hair care segments, complementing its consumer brands like Pantene and complementing Wella's portfolio including Wella Professionals, Sebastian, and fragrances such as Gucci and Escada.[10] The transaction faced regulatory scrutiny, particularly from the European Commission, which approved it on July 30, 2003, subject to commitments under Article 6(2) of the EC Merger Regulation to address competition concerns in hair care markets.[11] P&G completed the acquisition of the majority stake on September 2, 2003, paying 3.16 billion Euros for those shares, and proceeded with a mandatory public tender offer under German law to acquire the remaining outstanding shares at €38.50 per share.[12] By late 2003, P&G had integrated Wella's operations, adding roughly €3.4 billion in annual sales and strengthening its global beauty division, which grew to represent about 20% of P&G's total revenue.[9] Under P&G ownership, Wella benefited from expanded distribution networks and R&D resources, leading to innovations in professional hair coloring and styling products, though the acquisition also involved divestitures of certain overlapping fragrance assets to satisfy antitrust conditions.[13] The deal marked P&G's largest acquisition to date and was viewed as a strategic bet on the premium hair care market's growth potential amid rising salon demand.[14]Transition to Coty Ownership
In July 2015, Coty Inc. announced a merger agreement with Procter & Gamble's specialty beauty business, which included Wella Professionals and other salon professional hair care brands such as Clairol, through a Reverse Morris Trust structure valued at approximately $12.5 billion.[15][16] This transaction encompassed 43 P&G beauty brands overall, with Coty acquiring P&G's fine fragrance, color cosmetics, and hair color operations, marking Coty's entry into the professional hair care segment where Wella held significant market share.[17][15] The deal structure allowed P&G shareholders to receive Coty stock equivalent to a 43% ownership stake in the combined entity, while Coty assumed control of the divested assets, projected to generate combined annual revenues exceeding $9 billion post-merger.[16][18] Regulatory approvals delayed completion, but on October 3, 2016, Coty finalized the merger, integrating Wella into its portfolio and positioning the company as a major player in professional beauty products.[19] Under Coty ownership, Wella continued operations as a key professional hair care brand, benefiting from Coty's expanded distribution and marketing resources, though the acquisition strained Coty's balance sheet amid subsequent industry challenges.[1][20]Path to Independence under KKR
In May 2020, Coty Inc. announced a strategic partnership with Kohlberg Kravis Roberts & Co. (KKR) to carve out its professional and retail hair care businesses—including the Wella, Clairol, OPI, and ghd brands—into a standalone entity known as Wella Company, aiming to streamline Coty's operations and reduce its $7.9 billion debt load.[21] Under the definitive agreement signed on June 1, 2020, KKR committed to acquiring a 60% majority stake in Wella Company for approximately $2.5 billion in cash proceeds to Coty, valuing the business at $4.3 billion on a cash-free, debt-free basis; Coty retained the remaining 40% stake while receiving an additional $1 billion direct investment from KKR into Coty itself.[22] [23] The transaction closed on November 30, 2020, restoring Wella Company's independent operational status for the first time since its acquisition by Coty in 2015, with KKR providing strategic oversight through board representation.[24] [25] In October 2020, ahead of the close, Wella Company appointed Annie Young-Scrivner as CEO, tasked with driving growth in the professional salon sector amid post-pandemic recovery in hair care demand.[26] Early leadership expansions under KKR included appointing Virginie Costa as Global CFO in August 2021, leveraging her experience in consumer goods to support financial restructuring and expansion.[27] Post-independence, Wella Company prioritized organic growth, exceeding its first-year targets by December 2021 through investments in product innovation—such as advanced hair coloring and styling technologies—and targeted marketing to salon professionals, while navigating supply chain challenges.[25] KKR facilitated stake adjustments to consolidate control: Coty swapped a 9% interest in Wella for $426 million in KKR-held Coty shares in October 2021, reducing Coty's ownership to about 30.6%, followed by a $150 million sale of a 3.6% stake in July 2023.[28] [29] These moves enhanced KKR's influence, enabling focused strategies like doubling business in key markets such as Brazil by emphasizing salon-exclusive products.[30] As of March 2025, Coty anticipates divesting its remaining Wella stake by year-end, potentially paving the way for full KKR ownership or an exit via initial public offering (IPO), though earlier 2022 plans for a New York listing around 2026 remain unrealized amid market volatility in beauty stocks.[31] [32] Under KKR's private equity model, Wella has emphasized "beauty tech" integrations, targeting over $100 million in growth for the ghd brand through connected devices and data-driven personalization by 2026.[33] This approach contrasts with Coty's broader consumer focus, allowing Wella to prioritize B2B salon partnerships and premium innovations without public market pressures.[34]Ownership and Corporate Governance
Evolution of Ownership Structure
Wella was founded in 1880 by Franz Ströher as a family-owned enterprise focused on hair tulle production in Rothenkirchen, Germany, with his sons Karl and Georg joining in 1908 to expand into hairdressing products.[1] The business remained under Ströher family control through its rebranding to Franz Ströher OHG in 1918 and incorporation as Wella AG in 1950, during which the family maintained dominant influence despite operational growth.[5] In 1983, Wella AG went public, listing shares on German exchanges including Frankfurt, Munich, and Berlin, yet the Ströher family retained approximately 80% ownership, preserving its status as a family-controlled public company into the early 2000s.[5] This structure shifted on March 17, 2003, when Procter & Gamble (P&G) agreed to acquire 77.6% of Wella's voting shares from majority shareholders for about $5.7 billion, gaining control and fully integrating Wella into its global operations by September 2003.[35][13] Under P&G ownership from 2003 to 2016, Wella benefited from expanded resources but operated within the conglomerate's beauty division.[1] P&G divested Wella as part of a broader beauty portfolio sale, signing a definitive agreement with Coty Inc. on July 9, 2015, to merge 43 brands including Wella for $12.5 billion in a deal completed on October 3, 2016.[16][19] Coty held full ownership until May 11, 2020, when it announced a carve-out of its professional and retail hair businesses—including Wella, Clairol, and OPI—into a standalone entity, selling a 60% stake to KKR for $3 billion upfront plus up to $1.5 billion in contingent payments.[36] The transaction closed on November 30, 2020, establishing Wella Company as an independent firm with KKR as majority owner (60%) and Coty retaining 40%, enabling focused management and deleveraging for Coty via $2.5 billion in net cash proceeds.[24] Subsequent adjustments included Coty swapping a 9% Wella stake for KKR-held Coty shares in October 2021 and selling a 3.6% stake to IGF Wealth Management in July 2023, diluting Coty's interest while solidifying KKR's control.[28][37] This evolution reflects a transition from family stewardship to multinational corporate integration and back toward specialized private equity oversight, prioritizing operational autonomy in the professional beauty sector.[22]Current Leadership and Governance
As of October 2025, Wella Company operates without a designated chief executive officer following the resignation of Annie Young-Scrivner from that role on January 22, 2025, amid personal family considerations. [38] Glenn K. Murphy, founder and CEO of FIS Holdings, was appointed Executive Chair by the Board of Directors on the same date to oversee company operations, having previously served as Board Chair.[38] [39] The company is governed by a Board of Directors comprising eight members, reflecting its status as a private entity majority-owned by KKR (60%) with a minority stake held by Coty Inc. (40%).[38] Key board members include:- Glenn K. Murphy: Executive Chair
- Sir Roger Carr: Compensation Committee Chair; KKR Advisor and former Chairman of BAE Systems
- Jodi Taylor: Audit Committee Chair; retired Certified Public Accountant with over 30 years in consumer and retail finance
- Fara Howard: Chief Marketing Officer at GoDaddy, Inc.
- Lea-Sophie Cramer: KKR Advisor, entrepreneur, and investor
- Malaika L. Myers: Chief Human Resources Officer at Hyatt Hotels Corporation
- Nancy G. Ford: Partner and Co-Head of KKR Ascendant
- Gordon von Bretten: Partner at JAB Holding Company
- Rupert Pedler: KKR Principal in Private Equity