P&G acquires Nioxin Research Laboratories

P&G acquires Nioxin Research Laboratories

P&G acquires Nioxin Research Laboratories

Furthering its expansion into high-end beauty products, Procter & Gamble Co. has purchased Nioxin Research Laboratories Inc., a family-run, closely held maker of products to address thinning hair.

Terms weren't announced, but the deal was valued at just under $300 million, according to people familiar with the matter.

For P&G, the Cincinnati-based maker of household brands including Pampers diapers, Gillette razors and Dawn dish soap, the acquisition is the latest step in an aggressive march into the beauty market. Expanding its beauty division has been a strategic focus for the company because it sees more opportunities for growth there than in its traditional household-staples businesses.

Nioxin, based in Lithia Springs, Ga., makes a range of scalp treatments for thinning hair. The company, which holds about 75% of that market according to P&G estimates, sells its products through salons in more than 40 countries. Nioxin products include shampoos, scalp treatments and styling products.

Founded in 1987 by Eva Graham, the company is led by her son, CEO Brian Graham. Mr. Graham will continue to lead the business, and Ms. Graham will continue her research-and-development role, P&G and the Grahams said. Though approximately 60% of Nioxin customers are men, more women are citing thinning hair as a problem, Mr. Graham said.

"The thinning-hair segment has been growing about 6% to 8% annually, well ahead of the overall [salon hair-care] segment of about 2% to 3%, said Kevin Otero, P&G's professional-care general manager for North America. "We see it as a huge global opportunity."