Procter & Gamble Co. said Wednesday that it has acquired Atlanta-BASED Nioxin Research Laboratories Inc.
Nioxin, which focuses on the scalp care and thinning hair segments of the professional hair care business, is distributed in more than 85,000 U.S. salons and in more than 40 countries. Terms of the deal, which has been completed, were not disclosed.
“We are looking to establish P&G as the leader in the professional business,” said Kevin Otero, Procter & Gamble’s general manager of professional care in North America, noting that the deal is in line with the company’s stated strategy of focusing on fast-growing, high-margin, asset-efficient businesses. “We have strength with Clairol and Wella on the color side, but we need to complement that on the care side. Nioxin has a 75 percent share of the thinning hair business, which is a $4 billion dollar category globally. Nioxin will be a tremendous addition to our portfolio.”
The Nioxin executive team, including founder Eva Graham and chief executive officer Brian Graham, will continue to lead the company, said Otero.
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“Aligning Nioxin with the number-one global hair care company will take Nioxin to new levels,” said Brian Graham. “While we do distribute internationally, we are still primarily a North American brand. We are looking forward to the global expertise and growth opportunities that P&G will bring. We are also looking forward to leveraging the research and development and educational resources of the two companies.”
Nioxin’s products average between $15 and $20, with higher-end stockkeeping units ranging up to $60 for a three-step hair and scalp care system. Both Otero and Brian Graham noted that research and development synergies are particularly rich, especially between Nioxin’s scalp care and P&G’s Head & Shoulders businesses. As well, Otero noted that the color area and its treatment will be another key synergy.
“Procter & Gamble will continue and accelerate the growth of Nioxin,” said Eva Graham, who founded the company in 1987 with the idea of providing comprehensive skin care for the scalp in an effort to address thinning hair.
“Nioxin is an anomaly in the professional industry in that it has, over the years, been able to build a category that no one else had addressed,” said Steve Goddard, founder and president of Pravana, a professional hair care brand. “Because of that, they have done a significant job. It is a very clean acquisition.”
Many different brands have launched lines addressing fine and thinning hair, including P&G’s Frédéric Fekkai brand and Pierre Fabre’s René Furterer, but the fine and thinning theme is Nioxin’s entire umbrella, Goddard added.
Michel Dyens & Co. acted as exclusive financial adviser to Nioxin in this transaction.