BeautyMatter: Q1 2018 – Beauty Deals

BeautyMatter was born from Founder Kelly Kovack’s desire to provide a fresh voice to a beauty industry hungry for more content from her perspective, and through her lens. BeautyMatter aim to fill the void, connect the dots, and provide an informed, analytical, and compelling point of view. Exploring limits and blurring boundaries, they offer highly curated news and original content by thought leaders and beauty insiders.

Kelly Kovack:

So much for the beauty bubble some experts have predicted. Strategic buyers, venture capital firms, and private equity companies  have all been active, with many newcomers entering into the space. The first quarter saw some big raises to fuel growth, with Harry’s receiving $112MM in their ninth round of fundraising, BeautyCounter raised $65MM, while Goop secured $50MM and Glossier raised $52MM in Series Cs. The year also started off with a flurry of seed rounds and minority investments.

Goop raises $50 million in a Series C with investors in the round including NEA, Lightspeed, and Felix Capital. This round brings Goop’s total outside investment to $82 million.

Who: Gwyneth Paltrow founded Goop in 2008 out of her kitchen as a homespun weekly newsletter. She wanted a place to organize her unbiased travel recommendations, health-centric recipes, and shopping discoveries for friends, and she also wanted to get her own questions—about health, fitness, and the psyche—answered. The brand has evolved into a full-blown content-and-commerce lifestyle company.

Why: The newest investment will fund its international expansion, the company says, adding that it will specifically focus on expanding e-commerce into Europe by the end of the year, as well as host overseas events.

Details:

• This round brings Goop’s total outside investment to $82 million, following family-and-friend funding, a $10 million series A in 2015, and a $15 million series B in 2016.
• Market sources estimated Goop’s 2016 revenue at $15 to $20 million, but the company would not confirm the number. The company is not yet profitable.
• Goop not confirm a valuation but did say PitchBook’s recent estimate of $250 million was off, though the company would not comment on if it was too high or too low.
• According to Pitchbook, Goop had previously raised $26.5 million. It was valued at $65 million in August 2016.
• According to Forbes, the company claims it tripled revenue year-over-year for each of the past two years and says it is on track to more than double revenue in 2018.
• Goop launched branded products in 2016, which constitute Goop’s fastest-growing revenue stream. The company claims that sales will increase 200% this year.
• Goop launched Canadian shipping in December 2017.
• This year’s growth is expected to come from new Goop-branded product lines, including a fourth fragrance, new skincare products, and a home goods line, as well as the expanding international business.

Who: Naturex is headquartered in Avignon, France, and is an international leader in plant extraction and the development of natural ingredients and solutions for the food, health, and beauty sectors.

Givaudan is the global leader in the creation of flavors and fragrances. With a passion to understand consumers’ preferences and a relentless drive to innovate, Givaudan is at the forefront of creating flavors and fragrances that “engage your senses.” The company achieved sales of CHF 5.1 billion in 2017. Headquartered in Switzerland with local presence in over 100 locations, the company has more than 11,100 employees worldwide.

Why: As part of its 2020 strategy, this investment strengthens its capabilities in natural flavor solutions for its customers.

In their own words: Gilles Andrier, CEO of Givaudan, said: “The acquisition of a significant shareholding in Naturex fits fully with our 2020 strategy to expand our offering to deliver natural products to our customers. Givaudan is the global leader in the space of natural flavors and Naturex further complements our capabilities with its strong portfolio of plant extracts and natural ingredients across the food and beverage, nutrition and health and personal care sectors. We look forward to working with the management and shareholders of Naturex in the coming months to secure their support for the acquisition.”

Louie D’Amico, President Designate of Givaudan’s Flavor Division said: “Consumers around the world are increasingly demanding more natural and organic products from food and beverage companies. Naturex will be extremely complimentary to the acquisitions we have announced in this space over the last few years, namely Spicetec, Activ International, Vika and Centroflora Nutra.”

Details:

• Givaudan entered into an agreement to acquire 40.6% of the shares of Naturex for EUR 135 per share and a total consideration of EUR 522 million.
• This agreement is subject to all of the appropriate regulatory approvals.
• Naturex, a French public listed company with reported sales of EUR 405 million in 2017, operates from 16 production sites around the world and employs 1,700 people.
• Givaudan intends to launch a mandatory cash tender offer for all remaining outstanding shares of Naturex, at a price of EUR 135 per share. The board of directors and management of Naturex are fully supportive of the transaction.

Who: Freauty is an on-demand beauty marketplace, providing hair and beauty treatments to your door. Via the Freauty service, UK residents can book a mobile beauty or hair professional for a wide selection of treatments. These range from massages, facials, and manicures and pedicures, to makeup, spray tans, and waxing. 

Established in 2014, Urban Massage is today available in five cities across Europe: London, Paris, Vienna, Manchester, and Birmingham. The service allows users to book one of a menu of 11 massages, to be carried out in the comfort of their own homes. 

Why: The acquisition comes with the expansion of the corporate team, which will help support more businesses looking to offer well-being perks to their staff. Urban Massage is looking to broaden its offering considerably.

In thier own words: In a statement, Urban Massage explained that the move to buy Freauty would help the company “cater to more businesses looking to offer wellbeing perks to their staff.” Jack Tang, chief executive of Urban Massage, said: “We’re always looking to work with like-minded brands to help people include wellness rituals like massage into their busy urban lifestyles. Freauty has already created great traction in the space and we’re excited to expand our corporate relationships with this acquisition.” 

Kit Chong, chief executive of Freauty, said: “Over the past two years we have been leading some of our own acquisitions and growing our home and corporate client bases. I’m delighted to be on the other end of the acquisition and look forward to helping Urban Massage expand their global business.”

Details:

• Details of the transaction were not disclosed.
• The acquisition will see Urban Massage take on Freauty’s corporate clientele. 

Who: CurrentBody was founded in 2009 by Laurence Newman and Andrew Showman combining their backgrounds in medical devices and ecommerce. The concept for the website is geared solely towards technology of health and well-being. The retailer is home to the biggest brands in beauty devices including L’Oréal’s market-leading Clarisonic, NuFACE, SmoothSkin, Tria, Wellbox, Iluminage, and FOREO.

Why: This investment will help support the retailer’s next phase of expansion, allow the acceleration of strategic initiatives, and support working capital requirements. 

In their own words: Co-founder and CEO of CurrentBody, Laurence Newman, said: “Our partnership with NVM is a significant step in developing our unique product offering internationally whilst continuing UK growth. The team at NVM shared our vision and most importantly immediately understood the market opportunity of a pure-play beauty technology platform, making them an ideal cultural fit.

“Working with NVM will accelerate our ambition to provide the largest selection of clinically proven, at-home health and beauty technology in the world. Exceptional product knowledge in this niche area of beauty and excellent customer care from our team has been so important to our success so far. NVM’s support will further ensure that those high levels remain as we expand.”

Liam May, investment manager of NVM Private Equity, said: “CURRENTBODY has enjoyed exceptional growth over the past few years, driven by an energetic and ambitious management team with a deep understanding of the beauty market. We are excited to support the company’s next phase of growth, establishing itself as the market leading e-commerce platform for beauty devices in the UK and across the globe.” 

Details:

• CurrentBody received a £5MM growth capital minority investment investment led by NVM Private Equity (NVM).
• Based in Manchester, UK, the business was recently named number 22 in the Northern Tech 100. 
• NVM was provided with legal advice by Pannone (Tim Hamilton and Craig Geraghty), financial due diligence by Dow Schofield Watts (Jeff Gardner), market and commercial due diligence by Sempora Management Consultants (Francis Prosser), digital due diligence by onefourzero (Fleur Hicks), management due diligence by The Quinn Partnership (Mike Stiles), technology due diligence by Intuitus (John Lowe & Ian McMillan), insurance due diligence by Aon (John Donald & Gordon Shaw), and VCT compliance by Philip Hare and Associates.
• CurrentBody was provided with legal advice by Pinsent Masons (Anna Whetham), while GP Bullhound provided corporate finance advice (Nick Horrocks and Ed Prior).

Who: Supergoop! is the first and only prestige beauty brand 100% dedicated to UV protection. Founded in 2007 by former teacher and industry pioneer Holly Thaggard, the brand is driven by creating innovative, efficacious, and ingredient-conscious formulations that deliver broad-spectrum protection in unique, feel-good ways. The brand is serious in its mission to educate on the importance of sun protection, but fun and engaging in its lifestyle approach.

Encore Consumer Capital is a San Francisco-based private equity investment firm focused on the consumer products industry. The firm has raised over $600 million in equity capital and invested in 26 companies. The firm has a history of investing in beauty brands and is invested in Lorac and Butter London. Previously, Encore invested in MyChelle Dermaceuticals and Tarte, which it sold to Juggernaut Capital Partners and Kosé, respectively.

Why: Funds are said to be primarily earmarked to increase marketing efforts.

In their own words: “We are thrilled to partner with Encore to help us take Supergoop! to where no SPF has gone before,” said Supergoop! founder and CEO Holly Thaggard, an industry pioneer who has earned numerous distinctions and accolades for product and brand innovation. “I have known Kevin Murphy and the Encore team since the very early days of Supergoop!, and I am looking forward to their support as we continue our journey of changing the way the world thinks about sunscreen.”

“We have long been interested in investing in an SPF business, and we’ve been really focused on looking for a brand that we think can scale in a way that SPF brands typically don’t,” Murphy said. “Between the brand, management and the product innovation, Supergoop really does have a chance to grow into a large business.”

“We’re a products-first company,” said Amanda Baldwin, Supergoop president. “Everything starts with the product. We’ve got to get it into more hands and tell people more about it. Marketing dollars are essential to that, and doing it in a digital-first mind-set.” Increased marketing spend also likely means more hires, Baldwin said.

Details:

• Supergoop! gets minority investment from Encore Capital.
• Terms of the investment were not disclosed.
• WWD industry sources estimated Supergoop! is growing in the high double digits and could do between $45 million and $50 million in retail sales for 2018.
• The business has continued support from earlier investors including JMK Consumer Growth, Circle Up, Grace Beauty, Green Park, and Golf.
• Supergoop! also raised capital from tennis star Maria Sharapova in 2014.

Who: Parham Aarabi founded ModiFace 11 years ago in Toronto, Canada, creating advanced technologies of 3D virtual makeup, color, and skin diagnosis services that use proprietary know-how to track facial features and color. The technology is used by almost all major beauty brands, according to L’Oréal.

Why: This acquisition is in line with L’Oréal’s digital acceleration strategy to provide the group’s 34 international brands with the most innovative technologies in terms of services and beauty experience.

In their own words: “L’Oréal’s aquisition of ModiFace provides an incredible opportunity to innovate on beauty augmented reality and artificial intelligence at an unprecedented scale, the results of which will shape the beauty industry for the decades to come,” Parham Aarabi told WWD. 

Lubomira Rochet, chief digital officer of L’Oréal, said that ModiFace will “become the heart of our digital services R&D. With its world-class team, technologies and sustained track record in terms of beauty-tech innovations, ModiFace will support the reinvention of the beauty experience around innovative services to help our customers discover, try and choose products and brands. We at L’Oréal and ModiFace want to pioneer this new page of the beauty industry and serve our customers with innovative services and experiences.”

Details:

• L’Oréal acquired 100% of ModiFace.
• Financial terms of the deal were not disclosed.
• ModiFace will become part of L’Oréal’s Digital Services Factory, a network to create and develop new digital services for the company’s brands.
• ModiFace will remain based in Toronto and will collaborate closely with L’Oréal’s Advanced Research.
• ModiFace counts almost 70 engineers, researchers, and scientists on staff, who have registered more than 30 patents and published over 200 scientific papers

Who: Mario Tricoci and his wife Cheryl launched the first of their famed salons and spas in the Woodfield Mall in 1976. The company grew into one of the largest and most well-respected salon and spa businesses in the United States. Today the business consists of 14 salons and day spas and 2 smaller salons, and employs more than 1,300 industry professionals throughout the Chicago market.

In their own words: Mario stated, “First and foremost I am a stylist and have more to share with this magnificent industry – an industry that has given me so much. We have fabulous plans for cutting-edge innovation and new and improved services and products. We look forward to advancing this vision with our team and experiencing it with our guests very soon. Our renowned and oft celebrated team remains. This is a very exciting time for our company. It is a family business once again!”

“North Castle has been a wonderful partner for us and we’ve gotten along extremely well,” Tricoci told Crain’s Chicago Business.“Being as passionate a man as I am in regards to what I do, I believe the Tricoci family will once again be at the forefront of the beauty industry.”

Details:

• The Tricoci family sold a majority interest in the Mario Tricoci Hair Salon and Day Spa business 17 years ago but has once again assumed full control.
• North Castle Partners, is a Greenwich, Conn.-based private-equity firm that has owned it since 2000.
• Terms of the deal were not disclosed.
• The Tricoci business includes 14 salons and day spas in the Chicago market, plus two smaller salons that do not offer spa services.
• Press coverage after North Castle’s purchase put the salon chain’s annual revenue at $60 million in 2000; in an interview, Tricoci said the business was “worth the same, maybe more.”
• Under North Castle ownership, the Tricoci business merged with Elizabeth Arden, one of the largest salon and spa chains in the country.

Who: Fish is a well-established men’s grooming brand born out of original Fish salon in D’Arblay Street. Heritage underpins the 15-year-old product range of high-performance men’s hair-styling products. Distribution for the brand is currently in Boots, Superdrug, Tesco, and Waitrose.

Swallowfield is a private-label manufacturer with a portfolio of owned brands that were acquired in a 2016 Brand Architekts’ transaction. The portfolio consists of mid-premium beauty, body, and haircare brands sold at major UK and international high street retailers.

In their own words:  Chris How, Swallowfield’s Chief Executive Officer, commented to Business Leader, “Following the acquisitions of Real Shaving Company in 2015 and The Brand Architekts in 2016 we have been delighted to have seen strong growth momentum in our owned brand portfolio. This segment of our business showed sales growth of 25% in the first half of our current financial year and in that same period contributed 31% of Group sales. The addition of Fish to this vibrant portfolio will add further strength and growth potential.”

Details:

• The acquisition involves an upfront cash consideration of £2.7 million, with a further 12-month performance-based earn out figure of £300,000.
• For the year to 31 December 2017, the Fish brand generated net sales of £1.7 million and achieved £400,000 EBITDA.
• Fish will join the other male-focused brands MR, The Real Shaving Company, and Tru in Swallowfield’s portfolio.
• The brand will be managed by the team at Brand Architekts.
• Swallowfield’s subsidiary to accelerate the growth of the brand in the UK through the addition of new products and broadening distribution.
• Founder of Fish, Paul Burfoot, will work with Swallowfield as a consultant.
• Burfoot will continue to own and operate the iconic Fish salon in London’s Soho.

Who: With 150 years of authentic apothecary heritage, J.R. Watkins offers a broad range of natural personal and home care products sold to leading retailers nationwide. Established in 1868, J.R. Watkins began as an apothecary and supplier of personal care goods. Today, it is a globally recognized brand across a variety of household and personal care product categories. The company maintains a strong distribution network consisting of well-known distributors and retailers, as well as a growing online and Amazon presence.

Swander Pace Capital is a private equity firm that invests in companies that are integral to consumers’ lives. SPC’s consumer industry expertise informs the firm’s strategic approach and adds value through access to its proven SPC Playbook, senior team, and extensive network. The firm partners with management teams to help build companies to their full potential. SPC invests in businesses across three domains of consumer lifestyles: Food & Beverage, Body & Wellness, and Home & Family. The firm has invested in other beauty and personal care companies, including Glo Skin Beauty and Gilchrist & Soames.

In their own words:  “We are looking forward to building on the legacy of J.R. Watkins to increase its share of the household and personal care category,” said Heather Smith Thorne, managing director at Swander Pace Capital. “J.R. Watkins has always stood for a superior range of products, high caliber of customer service, and extremely loyal customer base. These are tremendous assets for any consumer-facing business and are major reasons we are excited about partnering with this team and brand.”

“We are thrilled to be working with such an experienced and knowledgeable partner in Swander Pace,” said Mark Jacobs, CEO of Watkins, Inc. “Time and again, they have nurtured authentic brands with high-quality products in the natural products space, helping them become leaders in their categories.” He added, “Swander Pace is known for helping companies grow revenues, improve profitability and unlock value, and we look forward to working with their team to ensure J.R. Watkins is well-positioned for long-term success.”

“Amid changing customer tastes, J.R. Watkins is in a unique position to increase its market share in the natural home, bath and body care business,” said Mark Poff, managing director at Swander Pace Capital. “We are confident that the investment will put the company in the best possible position to expand upon its already-successful legacy.”

Details: 

• No financial terms were disclosed.
• As part of its investment, Swander Pace will provide the resources and financial backing to carve out the J.R. Watkins Personal Care & Household product offering from Watkins, Inc. into a separate company.
• Mark Jacobs, CEO of Watkins, Inc., will continue his involvement with J.R. Watkins as vice chairman of the newly formed J.R. Watkins company.
• Swander Pace plans include building the company’s management team, expanding distribution, and increasing marketing spend.
• According to WWD, industry sources said after a growth plan is enacted, the brand could grow to do more than $100 million in sales.
• BMO Capital Markets advised Watkins, Inc. on the transaction.

Who: Toronto-based Cake Beauty was founded in 2003 by CEO Heather Reier. Achieving cult status over the last 15 years, Cake has secured its foothold in the Canadian market as a pioneer in crossing high-performing, naturally driven formulations with playful indulgence, and has won the love of editors, influencers, and customers alike with products that are 100 percent vegan and cruelty-free. Cake Beauty creates with heart, thinks beyond the pink, and designs award-winning, cruelty-free, and vegan products that women love to use every day.

Marc Anthony founded the Marc Anthony Cosmetics Ltd business in 1995. For over 20 years, the Marc Anthony Salons and its acclaimed team of Pro Stylists have styled influencers, from music icons to red-carpet A-listers, around the globe. The brand identity is based on salon-created, salon-approved quality hair care products at an affordable price distributed in over 25 countries. 

Why: The acquisition of Cake Beauty is part of Marc Anthony’s strategy to expand its portfolio of brands, further establish itself as a leader in the Canadian beauty market across price points, and support its global growth. 

In their own words: “I am beyond excited that Cake Beauty has become part of the Marc Anthony family. The customer-centric approach to beauty that we both share makes this the perfect addition to the Marc Anthony portfolio of brands,” says Marc Anthony, Founder and CEO. “I look forward to collaborating creatively with Heather and the Cake team and introducing this innovative, high-quality brand to our global customers.”

“Building Cake from the little company started in a kitchen to the beloved brand it is today has been the ride of a lifetime—and the natural next step for Cake is international expansion,” says Founder, Heather Reier. “In Marc and his team, I have found like-minded partners to build on what we’ve accomplished and look forward to bringing the brand to customers worldwide. I’m so pleased to be working with them and thrilled to start this journey as one team.”

Details:

• No financial terms were released.
• According to GCI, Cake Beauty is currently among Shoppers Drug Mart’s top-selling brands.
• Marc Anthony is a portfolio company of US private equity firm TA Associates, which invested in the business in 2016.
• Marc Anthony will take over management of Cake’s global sales team, retailer relationships, and global operation model.

Who: LA-based BH Cosmetics launched in 2009, and is a leading direct-to-consumer color cosmetics brand focused on the Millennial / Generation Z consumer. BH offers a full range of color cosmetics, brushes, and accessories at value pricing. The company has a worldwide social media following across multiple platforms and utilizes a deep influencer network to drive brand awareness and customer acquisition. Given the company’s heritage as a digitally native e-commerce color cosmetics brand, BH has developed an advanced e-commerce platform with proven capabilities in customer acquisition, consumer engagement, and customer loyalty.

Established in 2003, MidOcean Partners is a premier New York-based alternative asset manager that specializes in middle-market private equity and alternative credit investments. Since inception, the focus of the private equity funds has been on high-quality middle-market companies with attractive strategic, operational, and financial growth opportunities in the consumer and business services sectors. 

Why: This transaction will give BH the ability to expand in the US and globally, and capitalize on new wholesale opportunities.

In their own words: Fred Sadovskiy, BH co-Founder and CEO, commented, “We are very excited to begin our partnership with MidOcean. MidOcean has tremendous resources and experience building branded consumer products platforms and has a proven track record of helping take founder-led consumer businesses to the next level. We are confident that MidOcean will be an excellent partner for BH as we look to continue BH’s expansion in the color cosmetics market.”

Kirill Trachtenberg, BH Co-Founder and Chief Strategy Officer, added, “BH was launched in 2009 with a focus on eye palettes and has since developed a full suite of cosmetics with high quality products at value price points. The partnership with MidOcean will enable us to dedicate additional resources to key areas of our business including innovation and product development, marketing and branding and customer service. We believe there is a tremendous opportunity to accelerate BH’s growth and have been very impressed with MidOcean’s collaborative approach to developing and helping implement a growth strategy for BH.”

Robert Sefaradi, BH co-Founder and COO, further stated, “MidOcean’s experience building leading consumer brands and deep understanding of the industry makes them the ideal partner for BH. We have successfully accelerated BH’s growth in recent years by expanding into wholesale and international markets. With MidOcean’s partnership and guidance, BH will have the resources, industry knowledge and expertise to help take our Company and brand to the next level.”

Jonathan Marlow, Managing Director at MidOcean, concluded, “We are incredibly excited to partner with BH, a leading color cosmetics brand with a strong direct-to-consumer and digital marketing business model and multiple levers for continued growth. MidOcean has significant experience building strong consumer brands with founder-owned businesses and we believe that BH Cosmetics has substantial opportunities for continued growth and expansion fueled by appropriate investments in people, infrastructure and marketing. We see numerous opportunities to increase BH’s presence across channels and geographies and look forward to working with Fred, Kirill, Robert and the talented team at BH to drive this growth.”

Details:

• According to WWD, industry sources indicated the brand has between $50 million and $60 million in net sales, is very profitable, and does most of its sales online. 
• According to data from Tribe Dynamics, BH’s EMV was up 66% year-over-year for the third quarter of 2017 and has grown its community with a 278% increase in ambassadors, and grew its posts by 448%.
• BH will continue to be led by founders Fred Sadovskiy (CEO), Kirill Trachtenberg (Chief Strategy Officer), and Robert Sefaradi (COO). 
• BH will look to expand the company’s reach in current and new markets in partnership with MidOcean’s considerable operating resources.
• Kirkland & Ellis acted as legal advisor to MidOcean.
• The Sage Group acted as exclusive financial advisor and Sheppard Mullin Richter & Hampton LLP acted as legal advisor to BH Cosmetics.

Who: Persian-born New Zealander Soraya Hendesi founded Snowberry in 2007 out of necessity. She was unhappy with the compromises of conventional skincare and felt “natural” products were not scientifically advanced. She set out to create skincare with no compromises to functionality, safety, or the inclusion of ingredients in their optimum quantities. Snowberry is the first New Zealand skincare company to achieve carboNZeroCert™ certification for each of its products, and may be the first to do so globally. 

Why: For Snowberry, a big part of the motivation to sell was to give the company access to expansion capital. P&G and other CPG companies have been acquiring natural and innovative brands to address the changing preferences of a new generation of shoppers.

In their own words:  “Snowberry brings to our collection of skincare brands unique formulas rooted in the intersection of nature and science,” P&G spokeswoman Kelly Vanasse told the Cincinnati Business Courier. “It is a beautiful brand and story with outstanding performance, which makes it a great fit for P&G.”

“P&G has extraordinary R&D and marketing resources,” Greg Billington, general manager of Snowberry New Zealand, was quoted as saying. “Snowberry management considers it a privilege and a hugely exciting opportunity to have access to those resources, to continue to develop the anti-aging solutions that we know our customers want.”

Details:

• Terms of the deal were not disclosed.
• Snowberry falls in the prestige beauty category, which P&G mostly exited when it sold its specialty beauty portfolio to Coty Inc with the exception of  skincare brand SK-II. 
• Snowberry will continue to be run by its current team out of New Zealand.
• Snowberry distribution is primarily in New Zealand, China, and the US.

Who: Arbonne was founded in Switzerland in 1975 by Petter Mørck and brought to the US in 1980. The brand is the result of the founder’s vision to develop botanically based skincare, cosmetics, and nutrition products that are better for both consumers and the planet, while also providing an opportunity for people to become financially independent by joining a direct selling network.

The Groupe Rocher is and independent family-run group with a philosophy of “creative entrepreneurship.”  Groupe Rocher sales (from nine brands dedicated to women’s beauty and well-being): Yves Rocher, Petit Bateau, Stanhome, Dr. Pierre Ricaud, Daniel Jouvance, Kiotis, ID Parfums, Flormar, and Sabon) amounted to more than €2 billion in 2017.

Why: Groupe Rocher and Arbonne have many things in common: the concept of robust brands that share real values, high quality and innovation standards, a wide range of natural products, and a strong commitment to sustainability. Arbonne expects to be able to benefit from the resources and expertise offered by Groupe Rocher’s network of consumers, suppliers, and partners. A recent investment in the digitization of the direct selling network will allow Arbonne to help Groupe Rocher enhance the direct selling model. 

In their own words: Bris Rocher, CEO of Groupe Rocher, stated in a release: “This acquisition will be a real asset that will enable us to strengthen our positioning in the direct selling channel, which has seen an upturn over the past few years. We also have a heritage of providing employment opportunities—dating back to my grandfather, our founder, Yves Rocher, who cared deeply about providing employment since he started his business. This, combined with our direct selling know-how, should foster company growth and longevity.”

Said Kay Zanotti, CEO of Arbonne: “We share with Groupe Rocher commitments to pure, botanically based products and sustainability, as well as a long-term business vision that is grounded in family values. We are particularly pleased with Groupe Rocher’s keen appreciation of the many benefits of the direct selling model in providing flexible income opportunities, and a positive community of professional growth for individuals.”

Details:

• Arbonne is a global business with sales revenue in excess of 550 million dollars (450 million euros).
• Arbonne has approximately 800 employees and over 250,000 active independent consultants.
• This pending acquisition (the value of which has not been released) will round off the portfolio of Groupe Rocher brands, and positions the family-owned, Breton company as an operator that is growing more than ever before.

Who: Skylar Body launched eight moths ago as a direct-to-consumer, customized natural fragrance brand. The initial assortment consists of  four scents, Coral, Arrow, Meadow, and Isle, priced at $78 that are intended be mixed and matched for personalization. Founder and chief executive, Cat Chen, has experience in the direct-to-consumer, clean beauty world from her time at Honest. For the moment the brand is focused solely on building a direct-to-consumer brand, but future wholesale and online expansion is not off the table. 

Why: Funds are earmarked for product expansion, digital marketing, and hiring a team.

In their own words: “We’re less than a year old, [so] definitely a lot of women don’t know about us and awareness is [our] biggest opportunity and what we’ll be doing with this fund-raiser,” Chen told WWD. “In the future, we’ll expand into adjacent product categories [and do] the same thing in the scented space and natural space, so home fragrance and personal care are the additional categories we’ll be thinking about.” 

“It’s rare that we see a commerce category that so clearly leverages strong market trends with this type of high margin, high repeat rate unit economics,” said Kara Nortman, Upfront Ventures partner, in a statement. “[And] Cat Chen represents everything we look for in a founder. Cat is a triple threat with an unfair advantage in audience building, supply chain, and unusual access to the best local talent across both product and technology coming out of her years at Honest.”

Details:

• Upfront Ventures led a $3 million first round of financing for Skylar Body. 
• In the eight months since launch the brand has picked up 10,000 customers.
• According to TechCrunch the Los Angeles investment community is rallying behind Chen and her business. Brian Lee, Amplify, Upfront Ventures, Kaktus Capital (founded by ex-NastyGal executive Deborah Benton), and Brilliant Ventures are all investors in Skylar Body.
• Brian Lee, who made his name (and his fortune) in the LA technology start-up scene as a founder of LegalZoom, ShoeDazzle, and The Honest Co., was the original backer for Skylar Body.
• According to Crunchbase, Skylar Body raised an undisclosed amount in a convertible note from Amplify.LA.

Who: Spilo Worldwide was founded in 1942 by Charles G. Spilo. The Los Angeles-based business has been distributing products to the professional channel for 75 years. The Spilo family of brands includes ColorMode, Master Barber, Mehaz Professional, Rubis of Switzerland, ToolWorx, and many others.  

American International Industries has been a manufacturer and distributor of beauty brands for 45 years with a vast portfolio which includes Andrea, Ardell, Body Drench, Bye Bye Blemish, BWild, Checi, China Glaze, Clean + Easy, Clubman-Pinaud, DUO, European Secrets, EzFlow, Fright Night, Gelaze, Gena, GiGi, Gypsy Lash, Hollywood Fashion Secrets, IBD, Jeris-Lustray, Jerome Russell, LASH beLONG, Model in a Bottle, Nail Tek, No Tweeze/Micro Tweeze, ‘N Rage, Prolinc, Punky Colour, RAW, Salon Perfect, Seche, SuperNail, Surgi-Care, Waterworks, Winning Nails, Woltra, Woody’s, Youthair and others. 

In their own words: “Spilo is an icon in the professional beauty industry, one that I’ve admired since I first started in the business almost 50 years ago,” said Zvi Ryzman, president of A.I.I., in a release “We are committed to the development of the Spilo family of brands and will provide the support needed to grow them. We are confident combining these two organizations will strengthen the market position and growth of the brands while also expanding our position as a leader in the professional beauty industry.”

Details: 

• Terms of the deal were not disclosed.
• Both Los Angeles-based companies have been privately owned.
• The acquisition encompasses the entire Spilo family of brands which include ColorMode, Master Barber, Mehaz Professional, Rubis of Switzerland, ToolWorx, and many others.
• According to WWD, most of the 65 brands under the company’s umbrella were brought in through acquisitions. The company’s most recent purchases were Model in a Bottle, Hollywood Fashion Secrets, and Jerome Russell.
• Marc Spilo, current CEO of Spilo, will continue through the transition and thereafter.

Who: Jack Black was founded in Dallas, TX, in 2000 by by Curran Dandurand, Jeff Dandurand, and Emily Dalton. Jack Black was an early pioneer in the men’s category with products created with a simple commitment to customers: Nothing complicated. Nothing cosmetic. Just superior skincare. The assortment has grown to address all men’s everyday personal care needs offering a full range of products including skincare, body care, shaving, hair care, fine fragrance, and razors. Jack Black’s largest markets are in the US and Canada, where it is a top-selling brand at retailers such as Nordstrom, ULTA Beauty, Neiman Marcus, Bloomingdale’s, Dillard’s, and Sephora.

In their own words: “As a challenger company in men’s grooming, Edgewell has continuously pressed beyond category conventions to bring unique solutions and innovation, such as Schick Hydro and Bulldog skincare, to satisfy men’s everyday grooming needs,” said Colin Hutchison, Edgewell’s Chief Operating Officer, in a release. “Similarly, Jack Black is a breakthrough brand, driving the growth of the luxury men’s category through product innovation and cultivation of a highly engaged, loyal and growing customer base. The Jack Black brand is a strong and complementary addition to Edgewell’s portfolio based on its unique brand positioning, prestige channel footprint, and product assortment. This acquisition creates opportunities to expand our personal care portfolio in growing categories in the U.S. and globally, while nurturing the strong brand equity that the Jack Black founders have developed.”

“We are delighted to be joining Edgewell’s family of brands. This is an excellent home for Jack Black, and we look forward to continuing to drive strong growth in North America and expanding our global presence,” said Curran Dandurand, CEO of Jack Black. “We’ve built our leadership position in the U.S. by providing superior skin care products using the best ingredients, that work as advertised, and are never tested on animals. We’re very excited about the future and about sharing our products with more people throughout the world.”

Details:

• Terms of the transaction were not disclosed.
• The transaction will be funded from operating cash and is expected to be EPS neutral in fiscal 2018.
• Moelis & Company served as financial advisor to Edgewell.
• Piper Jaffray & Co. served as financial advisor to Jack Black, LLC.

Who: Launched by Gregg Renfrew, a former retail consultant in 2013, Beautycounter is a direct-retail brand of safer and cleaner skincare and cosmetics. Their peer-to-peer selling model or 25,000+ consultants across North America who earn 25% of each sale is the largest channel. The products are also available  through strategic partnerships including J.Crew, Goop, and a limited-edition collection with Target launching fall 2016. Beautycounter is known for its Never List™ of more than 1,500 ingredients they choose to never use when creating their products. 

Mousse Partners Limited is a single-family office run by Charles Heilbronn with deep experience investing in the consumer and beauty sectors.  Their portfolio of investments includes specialty beauty retailer Ulta, as well as Bonobos, Paddle9, and One Kings Lane.

Why: The new capital is earmarked for growth and building and the creation of a more robust omnichannel business along with technology and digital and brand marketing.

In their own words: “We are excited to work with Mousse and benefit from their deep strategic, operational and sector expertise,” says chief executive Gregg Renfrew in a statement. “They will be instrumental in helping us accelerate our growth as the leader in not only the safe beauty space, but the beauty industry as a whole.”

Parker Hayden, Managing Director and Head of U.S. Private Equity at Mousse Partners said, “We are thrilled to partner with Beautycounter and its talented management team to support their efforts to lead the safe ingredient movement within the beauty industry. Gregg is not only an inspirational founder who unites the community around the shared goal of using safe and effective products, but also a visionary. We believe that the trend she started with Beautycounter will eventually become the norm for all beauty products.”

“Gregg and her team are not only creating outstanding products, but they are building a movement that we believe can change the beauty industry and consumers’ lives for the better,” said Mike Stone, Partner at TPG and CIO of The Rise Fund. “We’re excited to continue partnering with Beautycounter as they pursue their next stage of growth.”

Details:

• The terms of the transaction were not disclosed. Bloomberg reports the company raised about $65 million, valuing the company at about $400 million, according to a source close to the company.
• The financing round was led by Mousse Partners and included earlier investor TPG Growth.
• Parker Hayden, managing director and head of U.S. Private Equity at Mousse, will join Beautycounter’s board of directors.
• According to Business of Fashion, the company added $13 million in funding from 33 undisclosed parties in 2016.
• TPG Growth led a $21.3 million investment in 2014, according to Crunchbase.
• Counter Brands, LLC acquired the worldwide assets of NUDE Skincare, Inc from LVMH in Q2 of 2016. As part of the transaction, Ali Hewson and her husband Bono will become investors in the company.
• Beautycounter received a minority investment from private equity firm TPG Growth in 2014.

ADDITIONAL TRANSACTIONS:

BASF Mexicana, S.A. de C.V. has closed the previously announced sale of a portion of its oleochemical surfactants business in Mexico to Stepan CDMX, S. de R.L. de C.V.

AkzoNobel sold 100% of its specialty chemicals business to The Carlyle Group and GIC for €10.1 billion ($12.6 billion).

HLD Group, the owner of French skincare brand Filorga, has bought French hair care specialist Lazartigue to save it from bankruptcy.

2M Holdings Ltd. (2M) has announced its acquisition of specialty chemical distributor Franken-Kosmetik-Chemiehandel GmbH & Co. KG (Franken­Chemie).

Albéa has announced the acquisition of Covit S.L., a company, based in Torelló, Spain, specializing in the manufacturing of metal parts for packaging products. 

Israel-based flavor and fine ingredients company Frutarom has acquired 100% of Israeli Biotech Research (IBR) for $21 million.

WestRock announced an agreement to buy KapStone Paper and Packaging Corp. for about $3.5 billion.

TechCare Corp. closed an $1.8 million round of funding. The technology company has a revolutionary delivery platform that uses vapor technology for natural health, wellness, and beauty treatments.

Sabic acquires stakes previously held by 40 North and Corvex Management representing a 24.99% stake in Clariant.

Prolana has been acquired by Cosmetics LK. Prolana is perhaps best known for its Nail Optimizer, a nail-hardening product that restores and strengthens brittle nails without the use of toluene or dibutyl phthalate.

Privé founded by hairdresser Laurent Dufourg has been acquired by Digital Hair Partners group of industry veterans. The business is being rebranding with new packaging, new formulas, and a new philanthropy mission called #careforall.

Barcelona-based Eurofragrance is entering the US market by acquiring a majority stake in Fragrance Design LLC. The acquisition of Fragrance Design based near Atlanta, gives Eurofragrance a firmer foothold in America and has strengthened its position in the body care and household sectors. 

Praxis Packaging Solutions, an independently operated subsidiary of the Huizenga Group based in Grand Rapids, Michigan, acquired Unette Corporation in Randolph, New Jersey.

Croda International Plc has acquired Nautilus Biosciences Canada Inc., a technology-rich marine biotechnology company based in Charlottetown, Prince Edward Island, Canada. 

CITIC Capital China Partners III, L.P., a buyout fund managed by the private equity arm of CITIC Capital Holdings Limited, has announced it has completed the acquisition of Axilone from Oaktree Capital Management, L.P.

Singer and entertainer Marie Osmond has joined MD Complete as the company’s new investment partner. Osmond is now a strategic advisor and owner.

French company La Phocéenne de Cosmétique, best known for its soap brand Le Petit Olivier, has acquired sun care brand Lovéafrom Biocos laboratory for 6.875 million euros.

Crown Laboratories, a specialty pharmaceutical company focused in dermatology and a Hildred Capital Partners, has acquired Ireland-based Vita Liberata, which focuses on advanced organic formulations, specializing in sunless tanning and skincare products.

Sun European Partners, LLP has entered into exclusive negotiations to sell packaging company Albéa to PAI Partners (PAI).