Though hair care industry takeout multiples have been on the rise, look for M&A to slow in the $6 billion U.S. industry, said the chief financial officer of an acquisitive hair care company. The CFO, who requested anonymity, described the shampoo, conditioning, colorants and styling gel arena as a two-tiered monster. Manufacturers of premium shampoo and conditioners can expect to see takeout multiples ranging from 12 to 14 times EBITDA, compared to 10 to 12 times EBITDA three years ago. One such deal, The Procter & Gamble Co.’s $5 billion acquisition of Bristol-Myers Squibb’s Clairol business, went for almost 16 times EBITDA.
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