Cosmetology M & A activity may have slowed slightly in 2020, but there were still many major deals. The year was ripe for a public offering from the parent company of Hims backed by Perfect Diary, The Hut Group and VC, but a $ 1 billion acquisition of cosmetics through a deal with Puig-Charlotte Tilbury and other meaningful deals. Was also seen. Here are some of the most major beauty M & A deals in 2020.
KKR acquires a majority of Coty Professional
Coty Inc. has signed a contract with a major private equity firm, KKR, to sell a majority stake in specialized sectors such as Wella, OPI and Clairol. Koti and KKR have signed a joint venture agreement that will allow KKR to control the division with 60% ownership after speculation that the transaction was successful due to the coronavirus. The move aims to simplify the business and allow Coty’s leadership to fix the sick consumer sector (Covergirl’s home) and accelerate the luxury segment, especially through skin care. Koti said in November that the deal was expected to close by the end of the calendar year, with the remaining 40% stake in the business valued at around $ 1.3 billion.
Hut group file for IPO
Hut Group, the owner of Illamasqua, Eyeko and lookfantastic e-commerce retailer, went public in September for $ 7 billion. The business continues to grow, with 2019 sales up about 25% to £ 1.1 billion. “We look forward to significant future growth and expansion across the beauty industry, which will continue to benefit our brand and our website. Subscription Beauty Box will continue to attract customers. Promoting loyalty, we expect our Prestige Beauty brand portfolio to benefit from the trend of premiumization and rapid expansion due to increased digital penetration and internalization, “said Matthew Molding, Chief Executive Officer. Stated.
Puig acquires a majority stake in Charlotte Tilbury
Charlotte Tillbury became the latest founder to win a $ 1 billion cosmetology deal when Puig agreed to buy a majority stake in her business for around £ 1.2 billion. BDT Capital Partners also purchased shares in this business. For the fragrance-focused Puig, the acquisition further increases its exposure to the color cosmetics category where the company played with Christian Louboutin Beauty and Carolina Herrera’s make-up line. Charlotte Tilbury’s business also included an expanding and successful skincare component, which grew rapidly during the COVID-19 pandemic. Estée Lauder Cos. Several strategic buyers, including, are said to have considered this business.
Yatsen file for IPO
In late October, Guangzhou Yatsen E-commerce Co., the parent company of skin care brands Perfect Diary, Little Ondine and Abby’s Choice, filed for an initial public offering in the United States. The deal will allow us to raise up to $ 100 million. It will be the first Chinese beauty company listed on the New York Stock Exchange. The business posted net profit of RMB3.03 billion in 2019, approximately $ 457 million. Yatsen plans to use the funds for investment and potential investments or acquisitions.
L’Oreal buys McGrath and Azzaro licenses from Clarins
L’Oréal signed an agreement to obtain a McGrath and Azzaro fragrance license from the Clarins Group in 2019, but ended earlier this year. The brand generated sales of around 340 million euros in 2018. The acquisition gave L’Oréal more access to prestige designer fragrances, but Clarins was also able to sell them altogether to focus on skin care. Mugler is known for its iconic Gourmand scent, Angel, and its best-selling Alien. Meanwhile, Azzaro’s portfolio includes classics such as Azzaro Pour Homme, Chrome and Wanted.
Him’s will be released due to SPAC merger
In early October, venture capital-backed Hims valued the company at $ 1.6 billion and made it publicly available at Oaktree Acquisition Corp. He said he had signed a merger agreement with. Him’s, which also operates a business segment for women called Haas, operates a telemedicine business that sells erectile dysfunction treatments and contraceptives, hair loss prevention and skin care products via the Internet. The deal, founder Andrew Dudam, addresses the business as “a gateway to healthcare systems and a first stop in people’s health and wellness needs for hundreds of conditions.” It was possible and said the brand would move to a new category. from now on.
Ipsy to win the boxy charm
Ipsy purchased a major slice of the beauty box contest when it agreed to acquire Boxycharm in October. The integrated business is expected to form a powerhouse with total sales of over $ 1 billion in 2020 and sufficient subscriber data to coordinate brand and product launches very specifically. Under this agreement, Ipsy restructured its business and established its parent company, Beauty For All Industries. This includes incubator Made by Collective, and soon a new brand called Refreshments will be launched with “clean essentials” such as face wipes and hands. cream.
KKW Cosmetics sells 20% stake to Koti
Kim Kardashian West has sold her cosmetics brand KKW Cosmetics minority status to Koti, following in the footsteps of her sister Kylie Jenner, who had previously signed a majority contract with Koti. In the case of KKW, the license agreement will allow Coty to develop skin care (currently the biggest focus) as well as personal care, hair care and nail care. However, for Koti, this deal is crucial for a broader plan to accelerate skincare growth and will be made through KKW and Kylie Skin.
Nestlé Health Sciences Acquires Most of Important Proteins
Nestlé Health Sciences has agreed to purchase a majority stake in Vital Proteins, an ingestible collagen business that manufactures powders, beverages and foods. The deal highlights growing interest in wellness categories and beauty wellness products. The transaction aims to provide Vital Proteins, which continues to operate as a stand-alone business, with resources to further innovate and expand its operations.
L’Oréal Acquires Sayers
L’Oréal has acquired Sayers Natural Remedies, the most well-known brand of witch hazel and toner, to increase its exposure to the space of natural beauty. The brand belongs to L’Oréal’s Consumer Goods division, which includes L’Oréal Paris, Garnier and NYX. Alexis Perakis-Valat, president of that segment, said the brand is part of L’Oréal’s global skin care strategy and Sayers will complement L’Oréal’s North American skin care brand portfolio.
For more information on WWD.com, please see:
Does Coronavirus Quash Beauty M & A?
Beauty M & A to watch in 2020
10 most important beauty M & A deals in 2019
10 Major Cosmetology M & A Transactions in 2020 – WWD
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