Breaking News

A Fertile M&A Climate In US Personal Care

June 6, 2013

• The US cosmetics and toiletries market continues to perform well, posting 3.4% growth in 2012, with sales signifying success for both key and niche industry players, according to recently published Cosmetics & Toiletries USA report from Kline & Company.


Kline contends that Anthony
Brands, which sells skin care
products like these, has high
potential for acquisition based
on its solid presence in the male
grooming market and a high level
of innovative product launches. 
While P&G maintains its lead in the US personal care market, its market share across multiple categories is being challenged. According to Kline, other major companies—in particular, L’Oréal and Estée Lauder—are enjoying steady growth.

But it is at the macro level where the flourishing personal care market is offering the most promise. According to Kline, smaller companies are making headway and highly viable impressions.

Due to a fertile M&A climate, smaller companies are attractive acquisition prospects for larger, cash-rich and savvy players. As a telling example, earlier this year, L’Oréal’s 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 (see Happi’s May 2013 issue, p. 24).

“Clearly, companies continue to emphasize growth agendas and make significant funding available—both strategic and financial sponsors—to realize such aspirations,” noted Eric Vogelsberg, senior VP at Kline’s 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.”

The Cosmetics & Toiletries USA report, consisting of almost 150 profiles of smaller and especially dynamic cosmetic and toiletry companies, reveals particularly promising companies that have been identified as positive net-value prospects, and they are also presently competing in segments that are expected to post higher-than-industry-average growth.

For starters, there’s New York City-based Anthony Brands, which Kline contends has high potential for acquisition based on its solid presence in the male grooming market and its high level of innovative product launches. Similarly promising 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.

More info: www.KlineGroup.com
  • It’s Magic!

    It’s Magic!

    Melissa Meisel, Associate Editor||March 20, 2017
    Argan oil-infused ‘Moroccan’ lip care brand jumps from WholeFoods into CVS.

  • On the Cutler Edge

    On the Cutler Edge

    Melissa Meisel, Associate Editor||March 13, 2017
    Top brand source at Redken forecasts up-to-the-minute hair trends.

  • Take The Hint

    Take The Hint

    Christine Esposito, Associate Editor||March 13, 2017
    Water brand forays into sun protection by capitalizing on scent and experience.

  • Supply-Side Innovations

    Supply-Side Innovations

    Tom Branna, Editorial Director||March 1, 2017
    Raw material suppliers roll up their sleeves and roll out their new products for the global cleaning industry.

  • New Faces in Familiar Places

    New Faces in Familiar Places

    Tom Branna, Editorial Director||March 1, 2017
    The American Cleaning Institute officially welcomed its new president.

  • Special Delivery

    Special Delivery

    Tom Branna, Editorial Director||March 1, 2017
    UV protection is important, but what good is that sunscreen if consumers won’t apply it?