Disappointing sales growth in the salon hair care market during the past few years has spurred multinationals to acquire smaller hair care companies, according to the “Salon Hair Care 2003” study by Kline & Co., Little Falls, NJ. Initial results indicated sales slipped 1% from 2001 to 2003, and the M&A trend is likely to continue.
“With all the M&A activity in the salon segment over the last five years or so, there aren’t that many companies still up for grabs,” said Lenka Contreras, vice president of Kline’s consumer products practice. “Still, we can expect the larger companies to continue to acquire smaller niche marketers and brands to keep their product lines fresh and trendy.”
She added that companies are turning to other countries and regions to grow their businesses. More info: Lenka Contreras, (973) 435-3407; E-mail: email@example.com; Website: www.klinegroup.com/y357.htm.