• The Wall Street Journal , Thursday, September 4, 2008 10:30 AM

Procter & Gamble has purchased Nioxin Research Laboratories, a family-run business based in Lithia Springs, Ga., that makes a range of scalp treatments for thinning hair that are sold through salons in more than 40 countries. Nioxin dominates its market with about 75% share, according to P&G estimates.

Though approximately 60% of Nioxin customers are men, more women are citing thinning hair as a problem, says CEO Brian Graham, who will continue to run the business. The company was founded in 1987 by his mother, Eve Graham, who will continue her research-and-development role, P&G and the Grahams say.

Expanding its beauty division has been a strategic focus for P&G because it sees more opportunities for growth there than in its traditional household-staples businesses. "The thinning-hair segment has been growing about 6% to 8% annually, well ahead of the overall [salon hair-care] segment of about 2% to 3%, says Kevin Otero, P&G's professional-care general manager for North America.

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