Potential merger between US manufacturers

- Last updated on GMT

Related tags: Cosmetics

According to TheDeal.com, US personal-care product manufacturers,
Cosmetic Essence (CEI) and Marietta, have begun looking for new
investors, fuelling speculation that they could be purchased by a
single buyer and merged.

The financial news website​ noted that together the two contract manufacturers could fetch more than $325 million, and save themselves significant manufacturing costs. However, differences in their product portfolios have led others to see little truth in the rumours.

CEI is owned by the private equity firm Brockway Moran & Partners and advertises itself as the largest US producer of alcohol-based fragrants, which are used in perfumes and colognes. It also produces creams, lotions and colour cosmetics for marketers of branded personal care products. Since 2000, revenues have risen from $110 million to about $190 million and Ebitda has jumped from about $15 million to $24 million.

New York based company Marietta, on the other hand, is a smaller business controlled by Florida financier Barry Florescue with an estimated Ebitda of about $20 million, which bankers suppose could sell for about $140 million.

Also in contrast to CEI, Marietta is better known for supplying branded and unbranded bar soap, dental and hair-care products to hotels and gift shops than it is for contract manufacturing.

Related topics: Business & Financial

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