Hain Celestial make further inroads into natural market

Hain Celestial has acquired the range, including the Avalon Organics and Alba Botanical natural and personal care brands, for $120 million in cash.

Richard D. Gersten, a North Castle Managing Director and developer of the firm's Aesthetics and Personal Care business said, "Having recruited a world-class management team to successfully execute our investment blueprint, we have complete confidence that Hain Celestial is a natural partner to help Avalon achieve its next stage of growth and development".​

The acquisition of Avalon, a leader in the natural products category in skin care, hair care, body, body and suncare, will elevate Hain Celestials position as a key player within the Natural and Organics market, following a number of successful acquisitions for the company earlier in the year.

Earlier this year the company acquired health and beauty products player Para Laboratories as part of its ambitions to extend its presence from the food and beverage sector into faster growing categories of the personal care industry.

The company stated that they hope to achieve 2006 sales of $680m, with a main contributor to its recent growth being the strength of its Jason personal care division.

A recent report by market researchers, Organic Monitor, highlighted the importance of the Naturals and organic market within the US and showed that high growth within the category has made it a focus of M&A activity.

Currently there are still a number of significant smaller and independent producers of natural and organic personal care products - a situation that is likely to be corrected in the future as larger international players move in to increase their footprint in the European market and tap into significant growth.

L'Oreal has become the world's largest cosmetic player and has increased its stance within the market with the purchase of The Body Shop and Sanoflore.

In the US the consolidation of the naturals and organic market is already well under way. This year natural oral care producer Tom of Maine was purchased by Colgate and Hain Celestial has already made a number of acquisitions within the category.

Despite the recent sale by North Castle, it is keen to continue to thrive within the Naturals market. In November, North Castle acquired a controlling interest in Caleel + Hayden, L.L.C., a developer, marketer and distributor of mineral-based cosmetics and high-end skincare products to the professional markets.