Breaking News

M&A Activity Heats Up

April 23, 2013

According to new Kline report.

US cosmetic and toiletry sales rose 3.4% last year, driven by gains from both multinationals and niche players, according to a new study by Kline & Company, Parsippany. But it is the biggest companies making the most gains and hungry for more. Procter & Gamble, remains the industry leader, but its share is being challenged across multiple categories by L’Oréal, Estée Lauder and others, according to Kline. Meanwhile, smaller companies are holding their own and garnering the attention of multinationals.


L’Oréal CEO Jean-Paul Agon announced that he was ready to make important acquisitions to maintain growth, and this has already been borne out by the recent acquisition of Interconsumer Products, one of Kenya’s largest manufacturers of personal care and beauty products.


“Clearly, companies continue to emphasize growth agendas and make significant funding available—both strategic and financial sponsors—to realize such aspirations,” said Eric Vogelsberg, senior VP, Kline M&A Advisory. “Such an improving environment is increasingly attractive for M& A and a growing number of smaller, often privately held, cosmetic and toiletry companies are contemplating, developing, and/or executing exits. As such, 2013 portends to offer even greater deal flow as many companies look to invest in new growth opportunities.”


Kline’s new report, Cosmetics & Toiletries USA, includes profiles of nearly 150 smaller and especially dynamic cosmetic and toiletry companies, reveals particularly promising companies that have been identified as positive net-value prospects and are also presently competing in segments that are expected to post higher-than-industry-average growth. Among the profiles are companies such as New York City-based Anthony Brands with the high potential for acquisition based on a solid presence in the male grooming market and a high level of innovative product launches.


Similarly promising, according to Kline, is Vogue International, a distributor of hair care and other personal care products in nearly 42 countries worldwide with a potential based on prolific R&D, mass brands with broad appeal and a recognized name. To uncover more companies that could be rich M&A targets, see Kline’s recently published blog post: Ripe for Acquisitions—Smaller Players in Personal Care Companies Post Above-average Growth. In terms of the overall cosmetics and toiletries market performance, the nail polishes category claims the most success, shining with 17.4% growth, fueled by continual innovation and high consumer demand. Additionally, skin care products for men show a strong performance in 2012, gaining formidable traction with innovative brands such as Lab Series Skincare for Men by Estée Lauder and Anthony Logistics For Men by Anthony Brands, performing exceptionally well and posting double-digit growth.


More info: www.klinegroup.com
 
blog comments powered by Disqus
  • Kitchen Counter Cosmetics

    Kitchen Counter Cosmetics

    Christine Esposito, Associate Editor||May 2, 2016
    LOLI box marks the convergence of natural and organic ingredients, subscription service and DIY cosmetic chemistry.

  • Mapping Out Multicultural Beauty

    Mapping Out Multicultural Beauty

    April 25, 2016
    Agnieszka Saintemarie of Kline Group about current trends and challenges in multicultural beauty.

  • At a Loss for Curls?

    April 22, 2016
    Amplixin, a Miami-based maker of hair strengthening products, has a solution for hair loss.

  • I Want It All

    I Want It All

    Melissa Meisel , Associate Editor||May 2, 2016
    Skin care moves beyond the basics with pampering formulations with unique components and novel functions.

  • Wacker Builds on Its Success

    Wacker Builds on Its Success

    Tom Branna, Editorial Director ||May 2, 2016
    The silicone maker had a good 2015 and expects the gains to continue in 2016, driven, in part, by success in the Americas and

  • That’s Awesome!

    That’s Awesome!

    May 2, 2016
    Extracts & Ingredients highlights the newest ideas in efficacious oils for the personal care market.