PROCTER & Gamble (P&G) is weighing options for the Chinese operation of its hair-care brand VS Sassoon, sources with knowledge of the matter said.

The consumer products giant has started gauging preliminary investor interest for the VS Sassoon business in the world’s second-largest economy, according to the sources. Options under consideration include a full or partial stake sale, they said.  

P&G is seeking a valuation of about US$1 billion for the asset in any deal, the sources said, asking not to be identified discussing confidential information. Deliberations are ongoing and there’s no certainty they will result in a transaction.

“We’re constantly looking at our portfolio, both acquisitions and potential options to create value for our shareholders,” chief financial officer Andre Schulten said, declining to comment on specific deals.

On Wednesday, P&G said the company’s first-quarter global shipment volumes were weighed down by weakness and volatility in China.

“We’re operating within a market that is still contracting post-Covid,” Schulten said on an earnings call. “We don’t expect the China recovery to be quick.”

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VS Sassoon was founded by the late British stylist Vidal Sassoon, who gained recognition in the 1960s after cutting the hair of actresses including Mia Farrow and fashion icon Mary Quant. P&G acquired Sassoon’s hair-care brand through its purchase of Richardson-Vicks in the 1980s. Sassoon also sold his interest in the Vidal Sassoon salons and a line of blow driers, irons and other hair-styling equipment. BLOOMBERG