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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@
Brennan Anderson, Vice President: [email protected]