Dep to Pay $45 Million for Hair Care Brands

Dep Corp. said Monday that it will acquire the Agree and Halsa hair care brands from S.C. Johnson & Son Inc. for $45 million.

The purchase price includes trademarks for the United States, Canada and most other foreign countries, together with related proprietary rights, inventory and equipment. The closing is scheduled to occur in early August.

“This acquisition fits superbly with our strategic plan,” said Robert Berglass, chairman and president of Rancho Dominguez-based Dep. “Our Dep and L.A. Looks brands hold substantial market share in hair styling but have only a modest presence in shampoo.”

Berglass said the Agree and Halsa brands could increase Dep’s hair care sales by 50%. The acquired brands will also strengthen Dep’s competitive position with its retail customers, he said.

Agree and Halsa shampoo and conditioner sales totaled about $65 million during the last year. U.S. sales accounted for about two-thirds of that, with the rest primarily in Canada, Australia, Japan, Argentina, Mexico and Spain.

Following a brief transition period, a significant portion of the products will be manufactured in the company’s facilities in Rancho Dominguez. The company said it expects to market the products outside the United States through licensees and distributors.

The acquisition is subject to the company obtaining bank financing. Executives said they expect Citicorp USA Inc. to be a lead bank.

The company said it has promoted several executives to help it meet strategic, long-term goals and integrate the newly acquired brands into the company. It named Jerome Alpin senior vice president and general manager of international sales and marketing and Robert Lancaster senior vice president of sales.

Dep also said E. Michael McNamara has joined the company in the newly created position of senior vice president of marketing. McNamara will assume responsibility for the marketing and long-term strategy of the company’s domestic business. Before joining Dep, McNamara was general manager of Max Factor and Fragrances, a wholly owned unit of Procter & Gamble.

“These changes reflect our determination to continue increasing accountability, streamlining operations and improving overall efficiencies,” Berglass said.

Dep, with annual sales of $120 million, manufactures and markets a wide range of personal care products under the Dep, L.A. Looks, Lilt, Lavoris, Topol, Natures Family, Porcelana and Cuticura trademarks. It is also the exclusive U.S. distributor for Jordan toothbrushes.