Florida-based cosmetic producers merge

By Simon Pitman

- Last updated on GMT

Related tags Cosmetics

Two cosmetics manufacturers based in southern Florida have merged
to create a company focused on manufacturing private label hair and
skin care products while tapping into manufacturing synergies.

Cosmetics Research said it has acquired Cosmetics Technologies.

Both companies are based in the Miami area and produce similar lines of products, providing the opportunity to combine the operations on save on operating costs.

Cosmetics Research said it will retain its legal name and the newly merged companies will be doing business under the name of Nuvo Cosmetics International from the existing Cosmetics Technologies manufacturing facilities in Doral, located in Miami-Dade County.

The newly formed operation will be providing shampoos, conditioners, hair treatments, styling aids, skin creams and hair relaxers, with many of the products being aimed at predominantly black and Hispanic consumers.

As well as benefiting from increased synergies and lower costs, the companies said that the acquisition should benefit its clients by increasing available resources to meet the demands of the fast-changing cosmetics industry.

The increased resources are further backed up by the fact that the Doral facility has received significant investment in recent years in an effort to modernize the facility, in turn increasing both production capacity and efficiency.

Likewise, the investment and increase in production capacity should also help the company to offer an increased product portfolio and manufacturing capabilities as well as creating a faster product turnover "This will afford our company a new and dynamic range of innovative cosmetic products and services, significant production capacity, added expertise, R&D technology and expanded customer services," said Marvin Lusky president of Cosmetic Research and Nuvo Cosmetics.

Recent data shows that both ethnicity and gender are increasingly driving the North American personal care market, with the ethnic hair care segment in particular showing plenty of promise.

The propensity for black and Hispanic populations in the US to buy and use more products is also reported to be capturing the imagination of marketers in the business.

In 2006 Pantene introduced a line specifically designed for the frizzy hair problems associated with Hispanic hair, while also launching a line that targeted the problems of breakage with African-American hair types.

According to Mintel, such introductions are likely to lead to more products on the market designed specifically for ethnic hair types and their particular hair issues, while additional possibilities may also exist for Asian hair types.

Likewise such market potential could also point to the possibility of further mergers and acquisitions within the ethnic hair and skin care segment.

Related topics Skin Care Hair Care

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