Small Players, Big Opportunities - Vibrant Personal Care Market Ripe for Acquisitions, Sees Kline

   Small Players, Big Opportunities - Vibrant Personal Care Market Ripe for
                           Acquisitions, Sees Kline

PR Newswire

PARSIPPANY, N.J., April 22, 2013

PARSIPPANY, N.J., April 22, 2013 /PRNewswire/ --Putting on its best face, the
U.S. 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 by global
consulting and research firm Kline & Company. However, it is at the macro
level that the flourishing personal care market is offering the most promise.

Procter & Gamble (P&G) maintains its lead in the U.S. personal care market;
however, its market share across multiple categories is being challenged. With
the exception of P&G, major companies – in particular, L'Oreal and Estee
Lauder – are enjoying steady growth. Of particular note, smaller companies are
making strong headway and highly viable impressions.

Within the presently fertile M&A climate, smaller companies are increasingly
attractive acquisition prospects by larger, cashed-up, and savvy players. As a
telling example, earlier this year, L'Oreal'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

Eric Vogelsberg, Senior Vice President at Kline's M&A Advisory, remarks,
"Clearly, companies continue to emphasize growth agendas and make significant
funding available – both strategic and financial sponsors – to realize such
aspirations. 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 Minor Companies chapter from 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 are also presently
competing in segments that are expected to post higher-than-industry-average

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 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.
See more examples in Kline's recently published blog post: Ripe for
Acquisitions – Smaller Players in Personal Care Companies Post Above-average

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 Estee
Lauder and Anthony Logistics For Men by Anthony Brands, performing
exceptionally well and posting double-digit growth.

An industry staple, the forthcoming Cosmetics & Toiletries USA is an
authoritative source on the personal care products industry, encompassing
market size and share data, retail sales, channel breakdowns, trends, and
forecasts for 26 major product categories and detailed profiles of about 30
leading marketers, and an analysis of media spending. Additionally, Kline's
Male Grooming Products: Global Market Brief offers robust analyses of the
burgeoning global male grooming market focusing on key trends, developments,
and business opportunities. Kline also offers a highly esteemed mergers and
acquisitions advisory service able to deliver effective, objective, and
executable strategies built on deep industry expertise, analytical and
management consulting capabilities, and a collaborative approach.

About Kline

Kline is a worldwide consulting and research firm dedicated to providing the
kind of insight and knowledge that helps companies find a clear path to
success. The firm has served the management consulting and market research
needs of organizations in the chemicals, materials, energy, life sciences, and
consumer products industries for over 50 years. For more information, visit

For more information, contact:

Vera Sandarova
Marketing Manager

SOURCE Kline & Company

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