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Hispania
Capital Invests in the Samy Companies
Hispania Capital Partners announced its investment in the Samy Companies,
a leading brand of salon hair care products, sold through direct market
channels in the U.S. and Europe, and major retail outlets throughout
the Americas.
Hispania’s investment will enable the company to expand its
retail distribution, increase its marketing expenditures to build
brand and consumer awareness as well as solidify its working capital
structure. The new entity remains Hispanic owned and operated.
The Samy Companies manufacture and market two principal lines of salon-quality
hair care products, Samy Salon Systems and Samy Salon Collections.
Together they comprise over 120 different products. Samy Salon Collections,
the #1 selling hair care brand on the Home Shopping Network, is sold
exclusively “on-air” in the U.S. and Europe. Samy Salon
Systems, the retail brand, is sold at leading drugstores, food and
mass-market retailers in the U.S. and Puerto Rico including Target,
Wal-Mart, Eckerd, CVS and many others.
Samy Salon Systems is also sold in Mexico and distribution will commence
in Central America the second half of this year.
Victor L. Maruri, a Partner at Hispania Capital Partners, commented,
"In the U.S. Hispanic Market, there are numerous companies with
significant name or brand recognition, yet limited resources. The
Samy Companies is one such example. Our investment will enable Samy
to broaden its distribution amongst major retail outlets serving consumers
already well acquainted with the Samy brand.”
Luis Delgado, President and CEO of Samy Companies, believes the company
is well poised for significant growth in the coming years. “First,
the Samy brand is a household name in the Hispanic market where above
average consumption of beauty products and brand loyalty will drive
sales in that segment. However, our brand is unique in that it also
appeals and sells as well in the general market as is evidenced by
our success in non-Hispanic areas and the Home Shopping Network. The
partnership with Hispania will allow us to substantially increase
our marketing expenditures thereby increasing our brand awareness
and expand upon our customer base.”
The U.S. hair care market is a $6.6 billion industry. The market is
comprised of shampoo, hair color, conditioner, gel and mousse accessories,
and hair sprays. From 1997 through 2002, shampoo and conditioner sales
grew 19%, driven largely by the sales of conditioner, which grew 26%
in that time period. Through 2007, shampoo sales are expected to grow
15% and conditioner 20% with salon brands growing faster than the
overall market.
Samuel “Samy” Suarez, the company’s Creative Director
and the face and spirit of the Samy hair care brand, is recognized
by USA Today as one of the ten best hairstylists in the U.S. As a
principal shareholder, Mr. Suarez will serve on the company’s
Board of Directors and will continue as the company’s principal
spokesman, and marketing personality.
The U.S. Hispanic population currently stands at over 39 million and
is growing at close to four times the rate for the rest of the population.
Hispanic’s purchasing power today stands at over $650 billion
and has increased 30% since 2001, double the pace for the rest of
the U.S. population.
Carlos L. Signoret, a Partner at Hispania Capital Partners, added,
"Samy's strong brand and expertise in targeting Hispanic consumers
was a strong attraction for our group. Hispania's investment in Samy
fits well with our investment strategy of providing growth capital
and management support to companies whose products and services are
favorably positioned to take advantage of these strong demographic
trends."
Hispania Capital Partners is a Chicago based private equity fund focusing
on investment opportunities in later-stage companies serving the U.S.
Hispanic market in the areas of media, business services, consumer
products, financial services, information technology, education and
food manufacturing and distribution.
© CONTACTO Magazine
Published on March 19, 2004
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