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
 
  • Patent Activity: Colgate-Palmolive

    Patent Activity: Colgate-Palmolive

    December 6, 2016
    New oral care compositions, the use of radish root ferment filtrate in a cleanser and more.

  • Cos Bar: Turning 40 and Hitting Fast Forward

    Cos Bar: Turning 40 and Hitting Fast Forward

    Christine Esposito, Associate Editor||November 21, 2016
    With a recent investor infusion, a new CEO and rebranding effort underway, this luxury beauty retailer has big plans.

  • Organic Matter

    Organic Matter

    Christine Esposito, Associate Editor||November 14, 2016
    FTC and USDA hold a public roundtable to discuss consumers’ perception of organic claims.

  • The World Comes to Orlando

    The World Comes to Orlando

    Tom Branna, Editorial Director||December 1, 2016
    More than 1,600 chemists traveled to Florida for the IFSCC Congress

  • The Plex  Phenomenon

    The Plex Phenomenon

    Denise Costrini, Croda North America||December 1, 2016
    Croda details the hair-protecting qualities of bond multipliers and the company’s new bond-building formulation system.

  • New Hair Care Ingredients

    December 1, 2016
    Check out the latest releases from suppliers.