February 14, 2010
London – A sharp rise in investment activity involving natural personal care companies is expected in 2010. Improving economic conditions and easing of capital restrictions are making investors target this high-growth sector once again.
The natural personal care industry was the darling of the investment community until the financial crisis started in 2008. After a lull period of 18 months, major deals have restarted. Bare Escentuals has been acquired by Shiseido in a US $1.7 billion deal, whilst the cosmetics company Clarins completed its purchase of Kibio this month.
Organic Monitor (www.organicmonitor.com) sees more such deals on the horizon as investors once again start pursuing natural personal care companies. Investors are attracted by high market growth rates and profitable product categories. European companies are expected to be involved in major deals in 2010 because of the lack of ‘investable’ companies in North America. Many leading American companies have already been acquired, leaving relatively few suitable privately-owned companies. In contrast, Europe has a high concentration of sizeable private companies.
In its new Strategic Insights report, Organic Monitor analyses Investments, Mergers and Acquisitions in the global natural personal care industry. The report gives details of major deals, the companies involved, investment rationale and impact, as well as future projections. The research shows that most deals have been in North America where companies - such as Bare Escentuals and Burt’s Bees - have been purchased at over 3-5 times their sales revenues. High prices are being paid by investors looking to emulate Estee Lauder’s success with Aveda. Since its purchase in 1997, Aveda has grown manifold to become a global brand of natural personal care products.
The report finds the most successful natural personal care companies are those that receive investment and continue to operate as separate entities. Aveda and Burt’s Bees are cited as such companies that have continued to show positive growth. In comparison, those that have been acquired and integrated into larger corporations have not realised their growth potential. A major reason is that natural personal care companies are typically small enterprises with strong ethical values which do not always fit well into larger profit-driven organisations.
Mergers, Acquisitions and Investments will be featured in the upcoming Sustainable Cosmetics Summit. Organic Monitor will present key findings from this new Strategic Insights report, giving details of the major deals and future growth projections. A leading private equity firm in the health & wellness area will give a seminar that highlights the financing options to natural personal care companies. William Rosenzweig, Co-Founder and Managing Director of Physic Ventures, will compare and contrast the various investment options available and specify the key criteria investors look for. Case studies will be given of companies that have received financing for business growth.
#7051-60 Strategic Insights: Mergers, Acquisitions Investments in the Natural Personal Care Industry
Publication Date: February 2010
More information on http://www.organicmonitor.com/705160.htm
Sustainable Cosmetics Summit
Some of the leading organisations in the natural personal care industry will congregate at the Sustainable Cosmetics Summit. The summit takes place at Grand Hyatt Hotel, New York on March 24-26th. Confirmed delegates and speakers include Aubrey Organics, Burt’s Bees, Jurlique, Weleda, Dr. Hauschka, Yes To Inc., Intelligent Nutrients, Kiss My Face, EO Products, Dr. Bronner’s Magic Soaps, Cosway and Natura.
The aim of the Sustainable Cosmetics Summit is to encourage the beauty industry to become more sustainable by bringing together key stake-holders and debate key sustainability issues in a high-level forum. More details are available from www.sustainablecosmeticssummit.com
About Organic Monitor
Organic Monitor is a specialist research & consulting company that focuses on the global organic & related product industries. Since our formation in 2001, we have been providing a range of business services to operators in high-growth ethical & sustainable industries. Our services include market research publications, business & technical consulting, summits, seminars & workshops. Visit us at www.organicmonitor.com
For further information, please contact:
Ms. Tina Gill
Marketing Manager, Organic Monitor
Tel: (44) 20 8567 0788
Fax: (44) 20 8567 7164
Email: [email protected]
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