The major league level of M&A activity in the second half of 2015 has made the first look like the start of little league season. That’s not to say that Unilever’s shopping spree of REN, Kate Somerville, Dermalogica and Camay wasn’t something to get excited about, but wow….Q3 2015 has been an off the charts blockbuster of both high volume and high caliber deals. The global scope of deals continues to be a mainstay, as well as digital and mobile platforms, new ways of reaching consumers and building brands, and new categories. It’s time now to step up to the plate – Honest or Tata, Cantu or Steiner, P&G or Coty?
HONEST COMPANY RAISES $100 MILLION
The Honest Company was co-founded in 2012 by actress Jessica Alba, Sean Kane, Brian Lee, and Christopher Gavigan. The inspiration for the Company came from Alba’s allergic reaction to a commonly sold laundry detergent. This experience led her to research products marketed to families and the realization that many are full of untested and possibly toxic chemicals. Leveraging Alba’s celebrity and Gavigan’s experience advocating for the education of safe products for families, The Honest Company was born. Initially, the Company’s products were sold via TV and the internet and focused on remedies for baby. The Company on consists of 120 different eco-friendly, non-toxic products and distribution has expanded into brick and mortar outlets in food, drug, and mass channels as well as some specialty and department stores.
Coming off of last summer’s $70 million raise at close to a $1 billion valuation, this $100 million dollar investment values the company at $1.7 billion. While sales figures are unpublished, it is said by Jeremy Liew, an early investor, that 80% of all revenues are derived from direct to consumer customers receiving monthly deliveries of diapers and other products. Use of proceeds are said to be for the development and launch of a line of skincare, cosmetics and hair care products, to support global expansion, and to improve its distribution capabilities.
• The Honest Company raised $100 million at a $1.7 billion valuation.
• The investment came from 2 new investors: Glade Brook Capital Partners and Alliance Bernstein, as well as three existing investors including Fidelity Management & Research Company.
• Before this round, $70 million was raised last summer, and $52 million was raised before that.
• Co-Founder and CEO Brian Lee also co-founded ShoeDazzle with Kim Kardashian in 2009 which was acquired by JustFab in 2013, and LegalZoom with Robert Shaprio, OJ Simpson’s defense attorney.
KK: It hasn’t been all smooth sailing for the Honest Company this year with very public issues related to the efficacy of their sunscreen all over social media. However, they stuck to their core values of honesty and transparency and handled this issue head on. With a CEO with a strong track record and a group of seasoned investors, it looks like this business is moving closer to the rumored IPO.
SG: This is an awful lot of coin to deploy on building a brand and with some “smart” investors at the table, one can only assume the data supports the valuation and funding. However, we all know what happens when we assume. Is Honest here to stay? Will the company build itself into a classic CPG? Only time will tell.
FIRST AID BEAUTY LANDS INVESTMENT FROM CASTANEA PARTNERS
First Aid Beauty (known as FAB), offers a range of skincare products that include cleansers, exfoliators, moisturizers, serums, and masks. The premise behind the brand is to bring a luxury approach to drugstore treatments, with enhanced formulations that can boost efficacy and results. Founded in 2009 in Newton, MA by beauty industry veteran Lilli Gordon, FAB products are free of harsh chemicals and known allergens, and address skin concerns such as aging, dryness, redness, eczema, acne and sun protection. First Aid Beauty is distributed through Sephora, as well as other domestic and select international beauty retail, and online.
Castanea Partners has a solid track record of investing in unique and differentiated brands like DryBar, Thymes, and Proenza Schouler. Said Castanea Managing Partner, Steve Berg, “First Aid Beauty is uniquely positioned in the personal care and beauty industry, and is an exciting opportunity for Castanea.” “Lilli and the team have developed a differentiated brand in the prestige category with a compelling range of products,” said Janet Gurwitch. “FAB has great potential, and we are thrilled to be part of the next stage of their growth.” Lilli Gordon, Founder and CEO of First Aid Beauty, said: “Having personally grown FAB every step of the way, I could not imagine a better partner than Castanea. They embrace our brand philosophy and have a deep understanding of the sector and a proven track record. We look forward to working together to fuel our original rescue mission to provide easy to use, effective, feel-good solutions for universal skin challenges.”
• Castanea Partners acquired a minority interest in First Aid Beauty.
• Steve Berg, Managing Partner at Castanea, and Janet Gurwitch, Operating Partner at Castanea and former Founder and CEO of Laura Mercier, will be joining Clive Bode and Karen Mills on First Aid Beauty’s board of directors.
• Financo represented First Aid Beauty in the transaction.
• Terms of the transaction were not disclosed.
KK: Lilli Gordon is not your typical twenty-something beauty entrepreneur. This brand is a testament to experience leveraging an impressive resume working for others into a startup of her own. She launched First Aid Beauty in her mid-50s, relying on her experience, connections, and determination.
SG: With grit and determination, Lilli Gordon has found success since founding the brand in 2009. She hasn’t wavered carving a new path in the skincare treatment space, and consumers clearly agree with her vision since growth doesn’t happen without ringing the cash register.
STYLESEAT RAISES $25 MILLION
StyleSeat is a platform for discovering and booking top beauty and wellness professionals, from hair stylists to massage therapists to personal trainers. Founded by Melody McCloskey, the four-year-old platform works with 320,000 stylists in 15,000 U.S. cities and has booked more than 30 million appointments. Stylists pay between $25-35 per month for the service. In 2015, StyleSeat will help drive more than $1 billion worth of appointments.
In the race to acquire consumers and engage stylists, StyleSeat is a player. Currently, the platform books about 1.5 million appointments a month. The biggest markets are Chicago, Atlanta, Dallas and Houston with more than $2 million per month in appointment bookings. Mobile bookings make up three-quarters of all appointments, and nearly a third of appointments are booked within one day of a previous appointment, showing the end users like the free service enough to try it again. To date, the platform has been able to increase average revenues for stylists by 70 percent over the first 15 months they use StyleSeat. Future initiatives include helping to connect stylists with customers for a fee. Improvements in data intelligence will drive this. Additionally, the company is focused on expanding the number of salons on the platform by growing its salon business on a national basis (beyond stylist directly).
• StyleSeat raised $25 million in Series B financing.
• The investment round was led by Fosun’s Kinzon Capital with participation from Lightspeed Venture Partners, Cowboy Ventures, and Slow Ventures.
• This latest investment brings the company’s total funding to date to nearly $40 million, including a $10.2 million Series A last year as well as $700,000 and $4 million seed rounds in 2011 and 2013.
• Use of proceeds will go to marketing and technology to boost activation amongst consumers and professionals.
KK: There has been a proliferation of M&A activity in service-based mobile apps this year, but StyleSeat has a leg up on its competitors. Most beauty apps are limited to a few major cities, but StyleSeat has the competitive edge being first to add scale nationwide. In a relatively new, fast moving segment of the beauty space, this investment should go far in establishing this app as the category leader.
SG: Let’s think about this: StyleSeat books 1.5 million appointments a month, nearly a third of appointments are booked within a day of a previous appointment, and the platform has been able to increase average revenues for stylists by 70% in 15 months. Wish I had skin in this game.
PDC BRANDS ACQUIRES BODYCOLOGY AND CANTU
Founded in 2003, Dallas-based Advanced Beauty Systems, Inc. is a marketer of budget beauty spa-quality product lines that include fragrance-based and aromatherapy products under the Bodycology bath and body brand as well as Cantu Hair Care. Bodycology is the number one specialty bath brand in the US according to Nielsen Retail Sales data, while Cantu, the fastest-growing multi-cultural hair care brand in the U.S. and is quickly cementing its position as a go-to solution for the unique needs of naturally textured hair.
In the second transaction between the two companies, PDC Brands has acquired Bodycology and Cantu from Advanced Beauty Inc. PDC is a joint venture with Yellow Wood Partners, a private equity firm out of Boston. Advanced founder and President Chris McClain, who used his knowledge as a former Wal-Mart buyer to help build sales of Bodycology and Cantu, said that with the sale of those brands he plans to focus on building lines he still owns including Earth Supplied Products, Toodaloo, and Aquation, as well as work on several new concepts. “We are looking to buy brands that can be number one or two their categories,” said James Stammer, chief executive officer of PDC Brands. The company’s portfolio includes Body Fantasies, which according to 2014 Nielsen data was number one in mass women’s fragrance, and BOD Man, the top seller in mass men’s fragrances. PDC also markets Calgon and The Healing Garden, which Yellow Wood purchased from Ilex (which acquired them from Coty) in 2013. While Bodycology is number one in the specialty bath market, its share had been declining along with soft sales in the category. “We feel we can give Bodycology and the category the attention needed to bring back growth,” Stammer said, noting that under PDC’s watch, Dr. Teal’s has almost doubled in size. With the addition of Cantu, a fast growing multicultural hair care brand, PDC expands beyond its affordably priced fragrances and bath products. “Cantu is a real gem,” said Stammer, adding that the line for naturally textured hair needs has great credibility with consumers.
• Terms of the deal were not disclosed.
• This is the second transaction between the two beauty companies. PDC, formerly known as Parfums de Coeur, purchased Dr. Teal’s Therapeutic Solutions in 2014 from Advanced Beauty.
• Advanced founder and President Chris McClain, used his knowledge as a former Wal-Mart buyer to help build sales of Bodycology and Cantu.
• According to Advanced Beauty, Inc., PDC has doubled sales and profits since joining forces with Boston-based private equity firm Yellow Wood Partners in 2012.
• PDC global sales are estimated at $400 million, a notable 30 percent increase in the last two years.
• PDC plans to expand even further by investing in our current brands as well as adding new and unique brands and products to our portfolio via acquisition according to Cosmetic Business.
KK: This transaction solidifies entrepreneurial PDC Brands’ position as an industry leader with the goods to compete with major players. They are laser focused on bringing the best of prestige beauty and specialty retail to mass-market consumers at affordable prices.
SG: There are many spaces in the beauty market outside our purview and I wonder how many of our readership has heard of Cantu, Bodycology, and Yellow Wood Partners? As Yellow Wood gobbles up lower tier brands to sit on its platform, a host of players – and opportunities – rise to the surface.
ALLIANCE GROUP CAPITAL (ACG) TAKES MINORITY STAKE IN TATA HARPER
Tata Harper Skincare is a Vermont-based natural beauty company founded in 2007 by wife and husband team Tata and Henry Harper. The Company offers both skincare and cosmetics that are 100% natural and non-toxic, owns the R&D process and manufactures its own highly-concentrated products, and is boasts environmental sustainability. Tata Harper is an early natural entrant to premium personal care, selling its products at retailers ranging from Sephora, Neiman Marcus, and Space.NK, to high-end sports clubs and apothecaries across the country.
According to ACG managing director, Julian Steinberg, “We’ve been looking for a beauty investment for a long time, and Tata Harper’s line hit every one of our criteria.” “It is an aspirational luxury brand that’s also 100 percent non-toxic and efficacious. The products are made in small batches and use botanical ingredients the founders grow themselves. The brand is already resonating strongly with consumers and retailers nationwide, and we believe it has a significant runway for growth.” Said Tata Harper, co-chief executive officer of the brand, “After speaking to many potential investors, we realized ACG was the ideal partner.” “Their support for our brand vision is a key ingredient for us to realize our full potential” added Co-CEO, Henry Harper.
• Tata Harper received a minority equity investment from Alliance Consumer Growth (“ACG”), a leading consumer-focused private equity firm
• The investment is thought to be between $5 million to $15 million.
• Use of proceeds will enable the company to fuel its continued growth and expansion.
• ACG currently holds minority stakes in Babyganics, The Honest Kitchen, SUJA, barkTHINS, Kriser’s Natural Pet and Shake Shack, among others.
KK: Tata Harper has established a clearly defined and well-articulated position in the natural category over its first eight years in business. ACG has a reputation for identifying innovative consumer and retail companies early, leveraging its strong industry network and brand-building expertise to help partner companies grow. This partnership seems like the perfect fit.
SG: The ACG guys have a way of finding a needle in a hay stack. Their selective investment strategy within a defined set of criteria appears to be working, as evidenced by their plays in Babyganics, Shake Shack, and now Tata Harper. Amongst a new breed of private equity investor, ACG has demonstrated that there is something to betting smaller, niche, and riding the tide of growth.
AVON SELLS LIZ EARLE TO WALGREENS
Liz Earle Naturally Active Skincare is a British beauty brand, founded in 1995. The Company was co-founded in 1995 by beauty editor at the time Liz Earle and Kim Buckland, who extended a friendship into a business partnership. Liz Earle creates efficacious products that work on all skin types by harnessing the potent powers of the finest quality naturally active ingredients. The brand was launched on QVC in 1996 and a shop opened in Ryde in 2001. The Company currently employs more than 600 people and sells in retailers in the UK and internationally including company owned stores, QVC, John Lewis, and Boots / Walgreens.
Avon bought Liz Earle in 2010, during Andrea Jung’s tenure as chief executive officer, and had operated it as a standalone business. In dealing with several issues in its core business, Avon’s primary needs were to focus on turning around the challenges in its core brand. Said Avon CEO Sheri McCoy, “Avon remains committed to our strategic priorities, and we are focused on promoting our own skin care and broader beauty portfolio. It is important to ensure all areas of the business are well-positioned to deliver near-term contributions as well as long-term opportunity. This transaction allows Avon to realize immediate benefits while continuing to strengthen our balance sheet. Liz Earle is the perfect fit for Walgreens Boots Alliance where it already has a strong presence in its retail stores.”
• Avon bought Liz Earle in 2010, during Andrea Jung’s tenure as chief executive officer, and had operated it as a standalone business.
• Avon Products Inc. sold the U.K.-based Liz Earle natural skin-care brand to Walgreens Boots Alliance for about 140 million pounds, or $215.5 million at the then current exchange.
• In 2014, Liz Earle represented approximately 1 percent of Avon’s revenues translating into sales of about $88.5 million and adjusted profit of $7.3 million.
• Funds from the divestiture, an all-cash transaction, are expected to be used for the redemption of $250 million in 2.375 percent notes due to mature in March.
• The price of the transaction is subject to an adjustment based on working capital.
• Cravath represented Avon in connection with this transaction.
KK: After years of deteriorating performance, this transaction allows Avon to realize immediate benefits to their balance sheet. Liz Earle on the other hand, gets out from under the troubled Avon umbrella and sees immediate and substantial growth through expanded distribution in the Walgreens/Boots doors.
SG: This deal is perfectly synergistic and perfectly in line with both firms’ focus on core initiatives. I have always been a personal fan of the concept of retailers (distribution) owning a stake in the brands they sell. After all, who knows more about shopper preferences and controls the levers to drive sell through?
LVMH ACQUIRES ASIAN BEAUTY START-UP LUXOLA
Luxola was launched in Singapore in 2011 and quickly grew into an online destination for beauty products in Southeast Asia; carrying over 4000 products and 250 brands of which 65 are exclusive across multiple markets. Luxola serves customers across the region including Australia, India, and the UAE. The Company is committed to providing outstanding customer service and bringing the best brands from around the world, under one platform. Luxola provides ‘how-to’ advice and a review platform for each product, providing the power to hear from others with similar skin tones and types.
“Beauty is very personal. For me, beauty is confidence in knowing who you are and stepping outside of yourself to explore your unusual. When I moved to Singapore in 2008, I found it challenging to find beauty products beyond shopping mall counters, which is brand specific. I wanted an unbiased and honest place for me to purchase and try beauty products – from skincare to makeup and fragrances. Luxola was born out of the need to give the power back to the consumer.” – Alexis Horowitz-Burdick, Founder & CEO
• LVMH has acquired Singapore-based e-commerce platform, Luxola for an undisclosed sum.
• The acquisition came after Luxola raised over $15.6MM in four rounds of funding, the last being a US$3 million round in May 2014 from F&H Fund Management and QueensBridge Venture Partners.
• According to Tech In Asia, Luxola’s revenue for 2013 to 2014 financial period was in the area of S$2.6 million (US$2 million). The startup held about S$11.8 million (US$8.75 million) in current assets, which could be a mixture of cash reserves and unsold inventory. Finally, the same data places Luxola’s valuation at the time of its series C investment in May 2014 at US$28 million or more.
• LVMH will leverage Luxola to penetrate and accelerate Sephora’s online growth in Southeast Asia.
• The acquisition is also said to aid in the crackdown of the sale of counterfeit goods in the region, which accounts for 20% of China’s cosmetics market.
• Luxola has 120 staff in 12 markets in South-east Asia, Australia, the United Arab Emirates and India.
KK: Luxola is currently active in 12 countries across Southeast Asia, Australia and India with a strong brand name. The strategic investment gives LVMH a readymade e-commerce solution in the region with an established user base. Sephora has a strong presence in Asia but it is primarily through brick and mortar but this acquisition provides a springboard to penetrate the online beauty market.
SG: World domination one channel, one brand, one retailer at a time. It’s the LVMH mission and they’re so good at it. Building on its strength in beauty both on the retailer and brand side, what better way to grow to dominance than to buy? Ka-ching.
CHATTERS HAIR CARE ACQUIRED BY ONCAP
Founded in 1990 in Red Deer, Alberta, Canada Chatters is the largest retailer of professional hair care products in Canada and one of the largest hair salon operations in the country with over 100 stores across eight provinces. The company’s salons double as retail shops, carrying over 5,500 SKUs across hair care, styling tools, cosmetics and more catering to on-trend young and middle-age adults.
Chatters’ full-service approach, retailing beauty products and providing services is timely for the current beauty landscape, as specialized haircare and grooming franchise are a growth business. In Canada, the market is less evolved than the US, where niche concepts like Dry Bar have found success. ONCAP was attracted to Chatters’ differentiated operating model with superior unit economics; market leading position with a strong brand in a growing and recession resistant industry; diversity by location, SKU, product/service category and supplier; and strong cash flow characteristics. ONCAP, in partnership with the Chatters management team, aims to create value through organic growth, new store openings and tuck-in acquisition opportunities within Chatters’ various market segments. Said Mark MacTavish, managing director of ONCAP, “Chatters is well positioned to build upon its strong foundation, and we’re excited to support its growth.
• Chatters Canada, the largest retailer of professional hair care products in Canada and one of the largest hair salon operators in the country was acquired in July 2015 in a management buyout led by ONCAP.
• Terms of the transaction were not disclosed.
• ONCAP invests in small and mid-sized companies that operate within industry niches and have strong management teams with the potential to become more profitable.
• Chatter was advised by Intrepid Investment Bankers, a leading consumer investment firm with expertise in beauty and personal care markets.
KK: Hair salons are a proven franchise model, and ONCAP provides the fuel needed for expansion in a market with plenty of opportunities.
SG: In a market with room to grow, Canadian-based Chatters is poised to assume a leadership position in the beauty space similar to how Ulta has emerged in the US.
WALMART ACQUIRES CHINESE PERSONAL CARE ETAILER YIHAODIAN
Yihaodian was founded in July 2008 with an aim to establish an online supermarket that provides customers with quality products and an excellent customer experience. Yihaodian currently offers more than 8,000,000 products, covering 14 product lines including Personal Care, with products including L’Oreal, Borghese, Olay, and others.
Walmart previously held 51% of Yihaodian and acquired the remaining shares from Ping An of China, the first financial investor in the Company, and co-founders, Gang Yu and Junling Liu. Walmart plans to invest in both accelerating e-commerce and creating a seamless experience for customers across online, mobile and stores. The Chinese e-commerce market has huge potential for global retailers such as Walmart. Total online retail spending in China was projected at $307 billion in 2013, and Forrester Research has estimated it should exceed $1 trillion by 2019. “Yihaodian has excelled as one of China’s top e-commerce businesses. We’re excited about the team at Yihaodian and their strong local e-commerce experience,” said Neil Ashe, president and CEO of Walmart Global eCommerce. “This local experience, combined with Walmart’s global sourcing and our strong local retail presence and supply chain will allow us to deliver low prices on the products customers need in new and exciting ways. Our investment in Yihaodian is part of our long-term commitment to grow in China, and we look forward to continuing to play a positive role in the development of the e-commerce industry. The two co-founders announced earlier this month that they are leaving Yihaodian, and will continue to serve as Chairman Emeritus and Strategic Executive Advisor respectively to ensure a smooth transition.
• Yihaodian currently offers more than 8,000,000 products, covering 14 product lines including Personal Care, with products including L’Oreal, Borghese, Olay, and others.
• In May 2011, Walmart first invested in Yihaodian to integrate its logistics to Yihaodian’s supply chain.
• In 2012, Walmart announced an additional investment in Yihaodian under the approval of Chinese Ministry of Commerce, which made Walmart the biggest shareholder of Yihaodian (51.3% of shares).
• In July 2015, Walmart announced full ownership of Yihaodian.
• Financial terms of the transaction were not disclosed.
• The two co-founders announced that they are leaving Yihaodian, but will continue to serve as Chairman Emeritus and Strategic Executive Advisor respectively during the transition period.
• Yihaodian will continue operating under its existing name and will maintain its focus on having strong local leadership with a clear understanding of the needs of online consumers in China.
• Wang Lu will lead Yihaodian, and brings extensive experience in the digital space in China, having been responsible for managing CBS Interactive in China and serving as the Senior Vice President and head of China at CNET Networks.
KK: I guess this is what a pivot looks like from one of the largest retailers in the world shifting the focus from brick and mortar to e-commerce in China.
SG: Who says Wal-Mart doesn’t have a growth strategy?
CATTERTON PARTNERS TAKES STEINER LEISURE PRIVATE
Founded in 1901, Steiner Leisure is a global provider of spa services, medi-spa services, a manufacturer and distributor of premium skin, body and hair care products and an accredited educator teaching students the skills necessary to be a spa professional, including massage, skincare and spa management. Product brands include Bliss, Elemis, Jou, La Thérapie, Mandara and Steiner skincare, wellness and haircare products. These are distributed through Steiner-operated day spas, resorts and spas-at-sea. Elemis is also distributed to over 1200 third party spas, and both Bliss and Elemis are distributed via retail outlets all over the world. Steiner Education Group operates schools at 17 campuses located in Arizona, Colorado, Connecticut, Florida, Maryland, Nevada, Pennsylvania, Utah and Virginia.
The acquisition adds a substantial collection of high growth retail and personal care brands to Catterton’s already impressive consumer portfolio. This transaction will provide Steiner Leisure with greater flexibility to focus on our long-term business initiatives and to improve our role as a global provider and innovator in beauty, wellness and education.
• Spa company Steiner Leisure Ltd. has agreed to sell itself to consumer-focused private-equity firm Catterton for about $834 million.
• The offer of $65 a share is a 15% premium to Steiner’s closing price of $56.53 a share on Thursday. Including debt, the deal is valued at $925 million.
• The deal is expected to close near the end of the year or early next year.
• The merger agreement includes a go-shop period, under which Steiner can solicit other offers until Oct. 6.
• As a result of the transaction, Steiner Leisure will go private and no longer trade on the NASDAQ.
• Jefferies LLC is serving as financial advisor to Steiner Leisure’s Special Committee, and Dechert LLP is serving as legal advisor to Steiner Leisure’s Special Committee.
• Kirkland & Ellis LLP is serving as legal advisor to Catterton.
• Fidelity Management & Research Co and Diamond Hill Capital Management Inc are Steiner’s largest shareholders with stakes of about 12.7 percent and 10 percent, respectively, as of June 30, according to Thomson Reuters data.
• Chairman Clive Warshaw, Steiner’s largest individual investor, stands to make more than $50 million from the deal. He had a stake of about 5.9 percent in the company as of April 15.
KK: A big transition of one entity that consists of multiple brands, categories and distribution channels. It will be interesting to see what’s next for Steiner.
SG: This is a big one. Leonard Fluxman has been the captain of the Steiner ship through many voyages, and this latest one is no surprise to me.
NBTY ACQUIRES DR. ORGANIC
Founded in 2008, Dr. Organic is a UK-based personal care company utilizing only the finest natural and organic raw materials wherever possible. The company sources and uses a wide variety of accredited and certified organic ingredients from around the World. Wherever an organic ingredient cannot be used, a sustainable natural or naturally derived alternative is used.
The Dr. Organic brand was first sold exclusively at NBTY’s Holland & Barrett retail chain in the UK, experienced rapid success and was brought to the U.S. in 2013 under the Organic Doctor name. In the U.S., Organic Doctor is sold exclusively through NBTY’s Vitamin World retail division, where the brand has been equally well-received by consumers. The beauty and personal care industry is a multi-billion dollar market that represents a natural extension for NBTY given its position as a leader in the wellness industry. “We are extremely enthusiastic about the strategic acquisition of Dr. Organic. We have a tremendous opportunity to expand our health and wellness portfolio and to broaden the distribution of these highly-regarded products. We believe the acquisition will allow us to accelerate NBTY’s entry into the mass-market beauty and skincare category particularly in the U.S., an area which we believe can be an important growth engine for our business, as evidenced by the success of our Nature’s Bounty Optimal Solutions product line,” said NBTY President & CEO Steve Cahillane. “Our partnership with NBTY’s retail division has proven to be the perfect fit for the Dr. Organic brand,” said Dr. Organic co-owners Fred Whitcomb and Steve Quinn.
• NBTY, Inc is purchasing the company for 55 million pounds, or around $86 million, according to Bloomberg.
• The deal is subject to customary closing conditions, and is expected to close later this year.
• Terms of the transaction were undisclosed.
• NBTY is a portfolio company of The Carlyle Group.
• Latham & Watkins LLP acted as legal advisor to NBTY.
• Dorsey & Whitney LLP acted as legal advisor to Dr. Organic.
KK: Beauty and personal care is a natural extension for NBTY, and Dr. Organic provides the perfect first step with its natural organic positioning.
SG: This is another great example of leveraging retail distribution to build equity value through branded assets. And, the timing is terrific for natural and organic based personal care products. Taking the brand into other retail channels will only drive growth more substantially.
TRILOGY ACQUIRES CS COMPANY
CS is New Zealand’s largest independent importer and multi-brand distributor of cosmetics, fragrances and toiletry brands. CS Company applies its 35+ years of in-depth local market knowledge and experience – an unrivaled nationwide sales network – and cutting-edge distribution systems. CS represents luxury fragrance brands including Marc Jacobs, Calvin Klein, Dolce & Gabbana and Gucci, and cosmetics and beauty brands including Max Factor, Natio and OPI. Based in Mangere, near Auckland Airport, the company has impressive warehousing and distribution facilities, and a staff of 56, which includes national sales coverage.
Trilogy International manufactures and distributes specialty natural skin care and home fragrance products through three brands: Trilogy, ECOYA and Goodness in New Zealand and around the world. The acquisition of CS Company provides a substantial top and bottom line growth contribution to the business, along with sales and distribution resources, expected to positively impact Trilogy’s share price.
• Trilogy International has acquired CS Company Limited.
• CS is forecast to achieve revenue of $41 million and EBITDA earnings of $6.4 million for the full year ended 31 March 2016.
• The deal was worth $37 million, made up of an up-front cash payment of $34 million, plus two deferred payments of $1.5m on the first and second anniversary of the acquisition. In addition, earn out payments will be paid on the third anniversary of the acquisition on achievement of certain profitability thresholds for the 31 March 2016 and 31 March 2017 financial years.
• CS will operate as stand-alone entity, and existing management will report to a subcommittee of the Trilogy Board led by Stephen Sinclair.
• Current CS owners CEO Ken Millar, COO/CFO Ray Guilford and senior executive Dianne Reynolds, will remain in the business.
• Trilogy CEO Angela Buglass will maintain responsibility for the Trilogy, Ecoya and Goodness Brands.
• The acquisition is expected to impact positively Trilogy’s share price and double the group’s revenue.
KK: The beauty market in New Zealand is growing and CS represents global beauty brands solid, expansion strategies. CS compliments the Trilogy portfolio creates scale and a platform for future growth.
SG: Ken Millar is the only name in beauty distribution in New Zealand, and while the market is small, it’s an important one. This synergistic deal multiplies the impact both firms have while providing a revenue boon to move the needle on the stock and here’s the proof: from the date the deal was announced to today, the stock is up 17%.
SYNERGY CHC TAKES STAKE IN HAND MD
Hand MD was co-founded by entrepreneur Kara Harshbarger after recognizing that there was a gap in the market for anti-aging products specifically formulated for the hands. With a history of bringing successful products to the marketplace, Kara sought out renowned dermatologist Dr. Alex Khadavi, founder of Advanced Skin & Hair. Together, Khadavi and Harshbarger created a formulation to rejuvenate the hands’ aging skin.
Synergy CHC Corp. is a Consumer Health Care company that is in the process of building a portfolio of best-in-class consumer product brands. Synergy’s strategy is to grow its portfolio both organically and by further acquisition. The acquisition of Hand MD is intended on growing Synergy’s revenues by accessing the market whitespace opportunity in the anti-aging hand care niche.
• Synergy CHC entered the personal care market through the acquisition of Hand MC.
• Synergy CHC took a 50% stake in the business with global sales and marketing rights in all channels.
• The deal included Synergy CHC making a onetime payment of $1.5MM plus 3 royalties for 3 years, with minimums in year 2 of $250,000, year 3 of $500,000 respectively, based on a royalty rate of 5% of net sales.
KK: This partnership reinforces the beauty industry’s ongoing convergence with the wellness and fitness industries. Let’s see if Synergy CHC’s foray into the personal care business turns a niche product into a real category.
SG: Is this a compelling idea or actual niche category opportunity? Time will tell and while Hand MD is not the first player to make a go at it, Jack Ross’s Synergy CHC may have the experience and horsepower to carve out this white space.
AHAVA SOLD FOR $76.3 MILLION
AHAVA Dead Sea Laboratories was founded to study the powerful, rejuvenating minerals found in the Dead Sea. Since then AHAVA has grown to become the definitive Dead Sea mineral beauty expert. Founded in 1988 in Israel, the AHAVA brand can be found in over 30 countries in the world’s leading department stores, perfumeries and chains. AHAVA continues to earn international acclaim from result-oriented customers who appreciate its Dead Sea Mineral expertise and genuine skin-friendly formulations.
Fosun International is the largest private-owned conglomerate in China and has acquired several overseas companies in the past 12 months. The move could help AHAVA expand into the lucrative Chinese cosmetics market. AHAVA seems to have suffered a drop in sales, employing 25% fewer people than it did in 2013.
• The owners of Dead Sea cosmetics maker Ahava have reached a preliminary agreement to sell control of the Israeli company in a deal that values it at 300 million shekels ($76.3 million).
• Gaon Holdings, which owns 15.72% of Ahava, said in a statement that the sale would be for at least 51% of the company.
• Gaon did not name the buyer, but Globes reported China’s Fosun International is the buyer, making it the majority owner alongside other shareholders Shamrock Israel Growth Fund and Kibbutz Mitzpe Shalem.
• Gaon has been leading the drive to sell the company as part of its strategy to focus on its core agrobusiness activities, including Middle East Tube.
KK: AHAVA has been rumored to be on the block for years, but I don’t think anyone saw an acquisition coming from China.
SG: Seeing a trend here? Despite contrary reports of economic woes, globally originated-mergers and acquisitions are occurring at a solid clip to leverage China’s consumer growth engine. While unremarkable in some ways and compelling in others, this deal is yet another example.
GIVAUDAN ACQUIRES INDUCHEM
Founded in 1946 Induchem AG develops and manufactures ingredients and supplies specialty raw materials for cosmetic applications at its headquarters near Zurich, Switzerland. Induchem provides a wide range of innovative and highly functional active ingredients with proven efficacy results.
With this acquisition, Swiss-based Givaudan continues to bolster its R&D and science-based active cosmetics ingredients business. Following on the Company’s acquisition of Soliance last summer, CEO Gilles Andrier said, “Induchem is a second key step, after the acquisition of Soliance, towards our ambition to make Givaudan a significant player in the Active Cosmetic Business.” “We expect Induchem to become an integral part of the Active Cosmetics Ingredients business within the Fragrance Division,” says Maurizio Volpu, President of Givaudan’s Fragrance Division. It is expected that Givaudan and Induchem will be integrated to expand the Company’s product portfolio as well as its R&D and marketing platform.
• Terms of the deal were not disclosed, but sources say Induchem would contribute incremental sales of approximately € 23MM Euro on a pro forma basis to Givaudan’s 2014 pro forma.
• Givaudan acquired 100% of Induchem’s outstanding shares.
• Givaudan will fund the deal from its existing balance sheet.
• This is Givaudan’s second deal in the cosmetics active space, following on its acquisition from Soliance last summer. That acquisition was funded internally and contributed incremental sales of approximately €20MM.
• It is expected that Givaudan and Induchem will be integrated to expand the Company’s product portfolio as well as its R&D and marketing platform.
• Induchem primarily operates from Volketswil, Switzerland, Toulouse, France and New York, USA, and employs 65 people.
KK: Adding Induchem’s cosmetic ingredients to Givaudan’s portfolio of flavor and fragrance is synergistic and strategic.
SG: Solid and strategic. This one makes sense as a bolster to Givaudan’s existing base while delivering incremental growth, too. The deal suggests innovation in the fragrance space, which is always welcome.
MICHELLE PHAN’S IPSY RAISES $100MM
Michelle Phan, YouTube beauty influencer and star with a huge audience, cofounded Ipsy in 2011 with Marcelo Camberos, who was formerly an executive at Funny or Die, and Jennifer Goldfarb, a Goldman Sachs analyst-turned-executive at makeup company Bare Escentuals. Previously called “MyGlam,” Ipsy is a subscription makeup delivery service that sends “Glam Bags” stuffed full of makeup and other beauty products — from popular brands like Urban Decay and Smashbox — to its customers for $10 a month.
In the battle of the beauty box wars, Ipsy competes with Birchbox, another VC-backed delivery service with $72MM in funding. Before its new round of funding, Ipsy had raised about $3 million in venture capital, but based on the Company’s boosted performance, which grew from Phan’s YouTube influencers; investors are going all-in on the company. Both Ipsy and Birchbox claim to have more than a million customers each. However, it is reported that Ipsy is profitable and that it has made more than $150 million in revenue. “Women are wanting less and less an authoritative perspective. They want something that’s personal; they want to follow someone’s advice who they really connect with,” Goldfarb says of Ipsy’s roots in the social influencer community. This is what differentiates the company from competitors; she says, including a forthcoming subscription service from Sephora called Play!
• Ipsy raised a $100 million Series B round.
• Sources say that the deal values the company around $800 million.
• Investors include TPG Growth and Sherpa Capital.
• In 2012 had previously raised about $3 million from investors including 500 Startups and Crosscut Ventures.
• The Company reports it has generated more than $150MM in revenue and has been profitable for 3 years.
• Ipsy currently has 10,000 content creators as part of its Ipsy Open Studios platform.
• Founder Michelle Phan YouTube videos have been viewed more than 1 billion times and she also won a 2015 People’s Choice Webby Award for the best how-to DIY channel.
KK: The presence of multiple companies that have raised large financing rounds with very smart money speaks to the potential market. Brands like working with these companies to drive additional exposure for their products and consumers like the discovery and social engagement. Every “box” strategy is different, and Sephora’s entry will certainly raise the bar in the box wars. However, Ipsy is different – the brand’s DNA is grounded in the power of organic content, its creator community and Michelle Phan’s marketing savvy having grown up to this point largely on its cash flow. My money is on Ipsy – this business is more than a subscription box; it’s a community and content platform.
SG: I’m still not sold on the beauty box concept as a sustainable business model though early entrants have successfully converted trial consumers into longer term customers. Content continues to be king and what better way to leverage Phan’s massively engaged audience than to plug in e-commerce? Even more impressive is the fact that the company is profitable. However, it’s unclear across what period it generated $150MM and how its revenues factor into the valuation multiple.
TEXTUREMEDIA ACQUIRED BY ULTRA STANDARD
Michelle Breyer and Gretchen Heber founded the company in 1998 to create a community for people with naturally curly hair to share beauty tips and products online. NaturallyCurly was one of the first digital platforms catering to the natural hair movement. Today, TextureMedia reaches 3 million people monthly across four portfolio brands, NaturallyCurly, CurlyNikki, CurlMart and CurlStylist, and up to 26 million including those brands’ social channels. TextureMedia’s market research brand, TextureTrends, also provided hair care brands with style trends consumer insights and behavior since 2010. By engaging beauty enthusiasts through original content, branded entertainment, social media, product reviews and commerce, they influence up to $5 Billion in annual hair care product sales.
Ultra/Standard is a leading distributor of textured-hair products to major retailers. “The acquisition of TextureMedia allows Ultra/Standard to closely track trends in the ethnic hair industry and to foster a conversation between retailers, brands and consumers,” said Michael Ross, president of Ultra/Standard. “Both Ultra/Standard and TextureMedia are pioneers in the textured hair care industry, Bailey said. Together they will be even stronger and will provide greater service to the 70 million adult women with textured hair,” she said. Ultra/Standard has demonstrated great success with growing acquired businesses, most recently with its acquisition of a Hispanic distributor in 2012, which has expanded their multicultural offerings.
• TextureMedia was acquired by ethic haircare distributor, Ultra/Standard.
• Financial terms of the deal were not disclosed.
• The Company had raised about $2 million since its founding in 1998. and includes investors Jimmy Treybig, founder of Tandem Computers and Billionaire John Paul DeJoria, cofounder of John Paul Mitchell.
• TextureMedia will continue to operate independently, in partnership with Ultra/Standard, from TextureMedia’s headquarters in Austin, Texas.
• The original team will remain firmly intact, including Michelle Breyer, original co-founder of NaturallyCurly.com & current Head of Business Development for TextureMedia.
• Terms of the deal were undisclosed.
KK: This transaction ticks two trend boxes – textured hair and multi-cultural beauty consumers. Brands and retailers both indicate these categories are becoming increasingly more important and represent the potential for substantial growth. This strategic investment of a community and content platform certainly gives Ultra/Standard’s brands a competitive edge. Hopefully, TextureMedia will be able to maintain autonomy and flip from and unbiased editorial platform to a pure advertising vehicle.
SG: This is by far, one of the smartest, most progressive deals I have seen in a very long time. What better way to become a category leader in an emerging category than by combining its’ most influential voice with the dominating distributor?
COTY ACQUIRES P&G PORTFOLIO
Founded in 1904, Coty Inc. is headquartered in New York City. The company operates in three segments. Fragrance licenses for Calvin Klein, Guess?, Marc Jacobs, Davidoff, Chloé, Balenciaga, Beyoncé, and Bottega Veneta. Color Cosmetics, and Skin & Body Care with Katy Perry, and Roberto Cavalli brand names. It also provides lip, eye, nail, and facial color products under the Bourjois, Rimmel, Sally Hansen, and OPI brands. Also, the company offers shower gels, deodorants, skin care, and sun treatment products under the Adidas, Lancaster, philosophy, and Playboy brand names. The company also markets its products under the Astor, Coty, Joop!, Jovan, Manhattan, and N.Y.C. New York Color brands. It sells its products through retailers, including hypermarkets, supermarkets, independent and chain drug stores and pharmacies, upscale perfumeries, upscale and mid-tier department stores, nail salons, specialty retailers, duty-free shops and traditional food, and drug and mass retailers.
“It’s transformational clearly because we will be doubling the business. We are right now about a $4.5 billion business. We’ll go to roughly a $10 billion business. We become one of the largest cosmetics players in the world, behind L’Oréal and Estée Lauder,” said Bart Becht, Coty’s chairman and interim chief executive officer. According to Becht, once the deal is completed, it will hold the number-one position in fragrance, number two in salon professional and number three in color cosmetics. The deal also further shifts Coty’s reliance away from fragrance, with that category now accounting for 44 percent of sales (down from the current 51 percent), color cosmetics representing 24 percent of revenues (down from 30 percent), skin and body accounting for 8 percent (down from 29 percent) and hair color making up 24 percent of sales.
• Coty Inc. acquired 43 brands from Procter & Gamble Co. for in a $12.5 billion deal.
• Coty will double its business from $4.5 billion to roughly $10 billion, with the P&G brands generating revenues of about $5.9 billion is fiscal 2014.
• The $12.5 billion deal is a combination of $9.6 billion in equity, as well as about $2.9 billion of assumed debt. As part of the transaction, Coty will refinance existing debt.
• Following the transaction, which is expected to close in the second half of 2016, P&G shareholders will still own 52 percent of the new entity that will control the brands, which will be called RMT Brands, while Coty shareholders will own 48 percent.
• The deal was structured in a Reverse Morris Trust and will catapult Coty from the 12th largest global beauty company in the world to the fifth spot.
• The transaction will result in a significant one-time earnings gain that will be recorded at closing of the transaction. P&G currently estimates the one-time gain will be in the range of $5 billion to $7 billion depending on the final deal value at the time of closing.
• The deal not only doubles sales but also management manpower, with 10,000 former P&G employees expected to cross over to Coty and join its existing 8,500 person staff.
• The deal extends Coty’s reach to the salon professional segment and retail hair color, bolsters its presence in fragrance and color cosmetics, and shifts Coty’s reliance away from fragrance, which accounts for 44 percent of sales (down from the current 51 percent), color cosmetics representing 24 percent of revenues (down from 30 percent), skin and body accounting for 8 percent (down from 29 percent) and hair color making up 24 percent of sales.
• Coty shareholder JAB Holdings, the Luxemburg investment company of the billionaire German Reimann family, will own a third of the combined entity.
• P&G’s 10,000 employees will join Coty’s 9,000.
• P&G’s beauty chief Patrice Louvet will not be part of the new entity.
• P&G is keeping a number of its marquee brands, including Olay and Pantene, along with SK-II.
• Goldman Sachs advised P&G, while Morgan Stanley was lead adviser for Coty.
KK: For years Coty has been acquiring brands patiently waiting for a chance to join the big leagues in the consumer space. It’s rare to have brands this size coming to market so winning the P&G auction catapults Coty into a much larger playing field. Acquiring a stable of brands allows savings through synergies for the company.
SG: From the sidelines, this is sort of a mind blowing deal to me in a “too big to fail” kind of way meets “am I watching a car crash in slow motion?”. I’m still digesting this one.
MADISON REED RAISES $16.1M IN SERIES C FUNDING
Madison Reed a hair-dye company that offers digital tools and mobile apps to help customers color their hair at home was founded in 2013 by Amy Errett. According to Madison Reed, it is bridging the gap in the $50 billion hair-care industry between salon-quality performance and at-home, affordable convenience.
Sam Landman, managing director at Comcast, said, “I saw how exceptionally ambitious the company is, and I’m looking forward to continuing the relationship to innovate their product and the way they connect with their audience through TV and our media channels.” According to WWD, Madison Reed said it plans to leverage Comcast’s media relationships with Comcast/NBCUniversal to expand its television advertising and marketing efforts. Globally, hair care products are the largest portion of the beauty industry. “We have a huge opportunity to completely reinvent the way women are coloring and caring for their hair by using technology, real-time access to licensed colorists, and better-for-you ingredients to deliver a superior result directly to consumers,” said Amy Errett, CEO and Co-Founder, Madison Reed. “With ongoing support from Comcast Ventures, Shea and our current team of investors, we can continue transforming the industry and delighting our customers to make them feel beautiful every day, inside and out.”
• Comcast Ventures and Shea Ventures led the latest round of $16.1 million Series C funding.
• Norwest Venture Partners and True Ventures, both of which are existing investors in Madison Reed, also made additional investments in the firm.
• The previous raise with Norwest and True was $15.9 million, in two parts. The aggregate raise is $32 million.
KK: The beauty industry is ripe for innovation and this is one brand that has found a big opportunity in the $15 billion U.S. hair coloring segment. They are tapping into consumers’ desire for customization using technology to bridge the gap between high-end salons and mass at-home coloring kits. I think this business is just getting started.
SG: At home color has been around for years. Whether or not providing access to information and technology can create new space or grow by trumping the competition remains to be seen. The one constant across deals like this, however, is the rich multiples and sheer amount of cash raised.
WALKER & CO. RAISES $24M; INKS DEAL WITH TARGET
Walker & Company was founded by former Foursquare exec Tristan Walker in 2013. The brand has focused to date on its flagship brand, Bevel, the first and only shaving system designed to reduce and prevent razor bumps and irritation for men with coarse and curly hair. The current Bevel shaving system, until the deal with Target deal, was sold only on the company’s web site.
Walker said a “good portion” of the funds from its Series A raise is still in the bank, but it elected to do the Series B so it could get “a little more aggressive” on the research and development front. “Walker & Company Brands is doing something that has not been done before – addressing the overlooked and unmet health and beauty needs of consumers of color,” said Somesh Dash, General Partner at IVP. “With an unwavering focus on efficacious products, superior customer service and authenticity in all that the company does, Walker & Company Brands is primed to break out as a leader in the market.”
• Walker & Co. Brands, which has raised $24 million in a Series B round of financing.
• The round was led by Institutional Venture Partners, a venture capital firm. Also participating in the round are Andreessen Horowitz; Upfront Ventures; Daher Capital; Collaborative Fund; Google Ventures; Felicis Ventures and Melo7 Tech Partners. Individual investors include Earvin “Magic” Johnson; John Legend; Ron Johnson, as well as both the CEO and president of the San Francisco 49ers, Jed York and Paraag Marathe, respectively, among others.
• The previous raise was $9.3 million in June 2014, giving the company an aggregate raise of $33.3 million.
• Walker & Co. Brands’ founder and chief executive officer, said the distribution deal with Target is for its single-edge Bevel razor and shaving product line, a system targeting the men’s grooming category.
KK: Walker & Company is yet one more in a string of Silicon Valley-backed companies trying to capture the opportunity to innovate the beauty industry. Smart money combined with an underserved consumer base sounds like a winning combination to me.
SG: There are some awfully successful people invested in this brand which is marketed well but not that revolutionary. As with many things in this world, this may be a case of the “who you know”.
SYMRISE ACQUIRES PINOVA HOLDINGS
Pinova was created in 2010 when TorQuest acquired Ashland’s refined wood rosin and natural wood terpenes unit and combined it later with Lyondell Basell’s Flavors & Fragrances business, now called Renessenz. Pinova Holdings, based in Brunswick, GA, supplies ingredients from natural and renewable sources used mostly in the manufacturing of perfumes, scents and oral care, including products based on wood, orange oils and paper production byproducts. Pinova Holdings owns operating companies Pinova and Renessenz.
“With the acquisition of Pinova Holdings, which owns the operating companies Pinova and Renessenz, we are taking a big step in the growth of our aroma molecules business,” said Heinz-Jurgen Bertram, chief executive officer of Symrise. “In view of the increasing importance of natural and renewable raw materials for the fragrance industry, the product range ideally complements our current portfolio. “Pinova Holdings has recognized expertise and is very well positioned in that area. In addition, Pinova Holdings will broaden our portfolio of ingredients in oral care as well as some attractive new market segments. At the same time, the company will benefit from our global presence and sales structure as well as our R.&D. expertise.”
• Symrise AG has acquired U.S.-based Pinova Holdings Inc. from Torquest Partners, a private-equity company, for $397 million.
• In fiscal year 2014, it registered sales of $287 million. The company has approximately 400 employees.
• Subject to conditions to be met within a year, the seller will receive a premium of $20 million.
• The acquisition is expected to close in early 2016.
• Symrise said it expects to integrate Pinova Holdings quickly and achieve annual savings worth 20 million euros, or $22.5 million at current exchange, by 2020.
• The price tag amounts to as much as 11.1 times Pinova’s 2014 adjusted earnings before interest, taxes, depreciation and amortization (EBITDA) of $37.4 million. That compares with a multiple of 17.3 times that Symrise is trading at,12.7 times for rival IFF, or 17.2 times for Switzerland’s Givaudan, another competitor.
• Pinova Holdings has manufacturing operations in Brunswick; Colonel’s Island, GA., and Jacksonville, FL.
KK: This deal comes on the heels of the Givaudan transaction with Induchem. Expansion through the acquisition of raw material companies seems to be a trend among fragrance houses.
SG: As with Givaudan’s acquisition of Induchem, this one makes great strategic sense while delivering incremental growth and efficiencies, too.
TARGET ACQUIRES SONIA KASHUK
Kashuk is often credited with creating the masstige trend. She conceived the idea for her line — high-quality products at reasonable prices — while on a book tour with Cindy Crawford. Makeup artist Sonia Kashuk has sold her namesake beauty brand to Target Corp., the mass retailer that has exclusively carried the line since its launch in 1999. Today, the brand consists of more than 300 products, including color cosmetics, accessories, fragrance and body care and, most recently, skin care, with prices ranging from $1.99 to $39.99.
Overall, Target’s beauty sales were estimated at $2 billion in 2013, the most recent year for which figures were available, with color cosmetics accounting for about $800 million of that. “As we continue to double-down on style, we’re focused on offering high-quality, affordable products our guests can find only at Target,” said Brian Cornell, the retailer’s chief executive officer. “This acquisition solidifies a key differentiator within our beauty business.” The deal also signifies a stronger emphasis on beauty for the Minneapolis-based Target, which plans on using the Sonia Kashuk brand as a platform to develop its own internal product design and development capabilities in the category. “It affords Target an opportunity to build capabilities that will allow us to grow and expand our beauty offerings in new ways in the years ahead,” said Cornell.
• Neither Target executives nor Kashuk would disclose the terms of the deal for the brand, which industry sources estimate has annual retail sales of around $75 million.
• Kashuk herself will continue to play an active role with the brand through 2017, primarily in a creative capacity.
KK: Yet another in a long string of retailers getting in the brand game through acquisition. Is this the next step evolution of “private label”?
SG: I know I have repeated this ad nauseam, but who better to own brands than a retailer? This one is a no brainer but also a head scratcher in a way given Target’s push to become leaner, especially in light of the sale of their pharmacy business to CVS. That said, the brand is clearly important to Target.
MANZANITA CAPITAL ACQUIRES MALIN + GOETZ AND KEVYN AUCOIN BEAUTY
Manzanita Capital has been quietly acquiring niche beauty brands to add to its stable. They happen under the radar and no information made public on the transactions. (Malin + Goetz) and Kevyn Aucoin Beauty are the most recent additions.
IFF COMPLETES LUCAS MEYER COSMETICS ACQUISITION
Lucas Meyer Cosmetics develops, manufactures and markets innovative ingredients for the cosmetics and personal care industry, offering proprietary active ingredients, functional ingredients and delivery systems that address health and wellness macro-trends in the beauty industry in both the developed and emerging markets.
LATEST IN BEAUTY ACQUIRES SHE SAID BEAUTY
Beauty discovery and sampling website Latest in Beauty has bought its main competitor SheSaidBeauty. The combined company is said to become the largest active beauty communities in the UK.
Just as anything can happen in the world of sports, boardroom and backroom deals can equally surprise, delight, and awe. The global beauty industry continues to thrive and as predicted, Q3 was more exciting than ever. With that, however, we’re left wondering, where do we go from here in the last stretch of 2015? Time will tell.
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