Beiersdorf plan more overseas acquistions
competitors outside of Europe, with more acquisitions planned in
China and the US.
Details of potential acquisitions could be announced by the end of 2007, chief financial officer Bernhard Duettman told Reuters. Following industry criticism that the company is falling behind competitors such as Germany based Henkel, Duettman has stated that despite focus still remaining on Europe Beiersdorf has to grow more strongly in overseas markets in order to broaden its profile and challenge competitors in these regions. The company acquired C-Bons, a personal care company in China earlier this year and is expected to invest in its hair care and hair styling business in a bid to expand further in the China - an area pitted to become the most dynamic over the next five years. Duettman said, "If we find a good brand here (China), we would make a purchase. We also have some interest in the US". Despite large acquisitions being hard to come by in the cosmetics and personal care market an analyst at Credit Suisse claimed that two potential targets for Beiersdorf are Clarins and Revlon - continuing that Clarins would be the attractive option, but Revlon is more realistic. Beiersdorf is also putting focus on strong organic growth, stating it would like to accelerate sales - with launches in the lucrative Nivea Visage and Nivea for Men ranges no doubt in the pipe line. An oxygen-based product range has recently been launched in the booming Nivea Visage product range, as a skin care treatment for female consumers who lead a hectic lifestyle. The range, Oxygen Power, integrates pure oxygen into a cream and is designed to make use of the replenishing properties of oxygen to the top layer of the skin, the epidermis. Containing 15 per cent of pure oxygen, the Oxygen Power products mirror the oxygen that is in the atmosphere, which penetrates 0.4 millimetres down into the skin and according to the company, allows the skin to breath, giving it a healthier appearance. Duettman stated that sales were expected to grow by 7- 8 per cent this year, in comparision to 7.3 per cent in 2006, adjusted in currency effects to €5.12bn.