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Market Monitor: Personal Care

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Market Monitor: Personal Care

Strong Rebound and Growing Opportunities

After a slower 2023, U.S. Personal Care M&A activity rebounded sharply in 2024, with 55 closed transactions, marking a 49% increase over the previous year. A significant portion of these deals was driven by private equity, signaling positive trends for the broader M&A market. Looking ahead, the outlook for 2025 remains strong, driven by several key factors.

Strong Growth in Beauty Care Transactions

  • Beauty Care: Transactions in the beauty care sector nearly doubled in 2024, reflecting the sector’s resilience.
  • Market Drivers: The easing of inflation and declining interest rates are benefiting the consumer discretionary sector.
  • Notable Deals:
    • Helen of Troy’s acquisition of Olive & June (nail care brand).
    • TSG Consumer’s investment in Summer Fridays (premium skincare brand).

Increase in Vitamins, Minerals & Nutritional Supplements M&A

  • Growing Market: M&A activity in the vitamins, minerals, and nutritional supplements sector increased in 2024.
  • Consumer Trends: 75% of American adults now regularly use dietary supplements, according to a recent survey.
  • Private Equity Activity: Notable private equity-backed add-on acquisitions of contract manufacturers, including:
    • Somafina (Heartwood Partners) acquiring UST.
    • Impetus Wellness Group (AEA Investors) acquiring Reliance Vitamin Company.

Factors Driving a Strong M&A Market in 2025

Hexagon Capital Alliance identifies several factors contributing to a favorable M&A environment for 2025:

  • Post-Election Certainty: Greater political and economic clarity.
  • Easing Regulatory Scrutiny: Potential for looser regulatory oversight in the financial sector.
  • Private Equity Capital: Record levels of available private equity dry powder.
  • Strong Balance Sheets: Strategic buyers are in a strong position to make acquisitions.
  • Improving Interest Rates: A more favorable interest rate environment.

Positioning for Success in 2025 M&A

  • Preparation is Key: Companies that prepare early for M&A in 2025 will be best positioned to attract buyers and secure favorable valuations.
  • Strategic Advantage: Early market entry will help businesses stand out in an increasingly competitive market.

How Hexagon Can Help

Hexagon Capital Alliance specializes in M&A advisory for the personal care sector. We help businesses:

  • Prepare for Sale: Position your company to attract the right buyers.
  • Raise Capital: Assist in securing the necessary capital for growth.

For more information or questions, please contact our contributors:

Rich Anderson, Managing Director: randerson@hexagoncapitalalliance.com

Johnny Sherwood, Director: jsherwood@hexagoncapitalalliance.com

Brennan Anderson, Vice President: [email protected]