Organix Hair Care looking for buyers-sources
NEW YORK Jan 30 (Reuters) - Organix Hair Care, a maker of haircare products, is up for sale in a deal that could be worth $800 million or more, according to three sources familiar with the matter.
Organix's owner, Florida-based haircare company Vogue International, is being advised by Goldman Sachs on the potential sale, according to the sources, who declined to be identified since the talks are private.
Organix, which sells shampoos, body washes and lotions, has about $80 million in annual earnings before interest, taxes, depreciation and amortization (EBITDA), said the sources. Based on multiples of other deals in the personal care industry, the sources said Organix would hope to fetch $800 million or more.
First-round bids for the company were due earlier this month, one of the sources said.
Logical buyers could include French beauty products maker L'Oreal or Unilever, owner of the TRESemme and Sunsilk brands, and Procter & Gamble, which owns the Pantene and Wella haircare brands, the sources said.
Beauty brands have been a tough sale recently.
While private equity firm Casanea Partners was able to unload makeup company Urban Decay Cosmetics to L'Oreal late last year, other brands like skin care company Perricone MD were on the block but unable to find homes.
Vogue International, which also owns the FX Special Effects line of hair styling and treatment products and the iWater Shower Purification System, was not immediately available for comment. L'Oreal, Unilever and P&G were also not immediately available. Goldman declined to comment.