HallStar has a large range of personal care ingredients including sun filters, surfactants and conditioning agents; but, has said it is keen to target the natural and organic space which it has highlighted as a profitable market.
The company cited market data from Kline that put the compound annual growth rate of the market from 2003 – 2009 at 14 percent, and valued natural and organic sales in the US at $3.8bn in 2009.
Immediately enters natural space
In acquiring BioChemica, which manufactures and supplies exotic butters and oils, including some certified organic, HallStar will immediately become a player in the natural space.
HallStar CEO John Paro highlighted the profitability of the naturals market the potential growth for the company it holds.
“Based on marketplace trends and our current position as a provider of innovative personal care ingredients, expanding into the naturals space is a logical move that will help us better serve our customers while also delivering profitability,” he said.
Commenting on the greater market opportunities available to the combined company Paro said: “HallStar and BioChemica enjoy, quite literally, great chemistry. Together we will make a market impact well beyond what either of us could accomplish individually”.
BioChemica brings technical expertise in developing and marketing exotic butters, while HallStar will support BioChemica in developing new consumer-friendly products and market existing ones.
While BioChemica will become a business unit of HallStar, it will continue to be headquartered in Melbourne, Florida and retain its employees.