In 2023, the beauty industry witnessed a flurry of mergers and acquisitions (M&A) as companies sought to expand their portfolios and capitalize on growth opportunities. Despite potential economic headwinds, the beauty market has demonstrated resilience and adaptability, with U.S. prestige beauty industry sales reaching $14 billion in the first half of the year—a 15% increase compared to the same period in 2022.
High-profile transactions, including Procter & Gamble's acquisition of Mielle and e.l.f. Beauty's purchase of Naturium for $355 million shows the strategic importance of diversification and direct-to-consumer engagement. As we delve into the intricacies of the beauty M&A landscape of 2023, we'll explore how these deals are not only driving financial growth but also setting new standards for what constitutes an attractive investment in the beauty industry. Here is a comprehensive list of notable beauty M&A deals that took place throughout the year:
1. Procter & Gamble's Acquisition of Mielle
Procter & Gamble signed a deal to acquire Mielle, a Black-founded textured hair care brand, for an undisclosed sum. Founded with a focus on Black and Brown communities, Mielle has grown into a beloved brand. While the purchase price remains undisclosed, the deal includes a joint commitment of $20 million to Mielle Cares, a charity aimed at providing economic and educational opportunities.
2. Unilever's Sale of Suave
Unilever sold its Suave business in North America to Yellow Wood Partners while maintaining ownership outside the U.S. and Canada. This sale is part of Unilever's broader strategy to streamline its portfolio and concentrate on high-growth areas. Despite the sale, Unilever retains ownership of Suave outside of the U.S. and Canada, indicating a strategic repositioning rather than a complete exit from the brand.
3. Investment in Dolce Glow by Miley Cyrus
Miley Cyrus invested in self-tanning brand Dolce Glow, a self-tanning brand inspired by Italian aesthetics and favored by celebrities. Cyrus, a regular customer of Dolce Glow, took her relationship with the brand to the next level by contributing to its first family-and-friends funding round. This partnership highlights the increasing trend of celebrities leveraging their influence to back brands they are passionate about, bringing a new dimension to brand endorsements and investments.
4. Ceremonia's Series A Investment Round
Ceremonia raised $10 million in a series A investment round led by Sandbridge Capital. Ceremonia, a brand that has carved a niche in the beauty industry with its Latinx clean hair care products, embarked on a new chapter of growth with a successful $10 million Series A funding round. The investment, led by Sandbridge Capital, came at a pivotal moment as Ceremonia expanded its presence to over 500 Sephora stores. The brand, founded by Babba Rivera in 2020, has been lauded for its focus on natural ingredients sourced from Latin America and its commitment to catering to the Latinx community with wellness-oriented hair care solutions.
5. Symrise's Investment in Synergio
Symrisea, German fragrance and flavors supplier, took a minority interest in Israeli biotech company Synergio, with the option to acquire a majority stake in the future. This investment is geared towards accelerating the creation of natural antimicrobial solutions, reflecting the industry's pivot towards sustainability and plant-based technology.
6. Straand's Pre-Seed Investment
Australian scalp care brand Straand secured a $2 million pre-seed investment from Unilever Ventures. Launched in July 2022, Straand is Australia's pioneering microbiome-focused scalp-care brand. The investment by Unilever Ventures, announced on January 30, 2023, is set to propel Straand's expansion into key international markets, including the US, UK, Europe, and China. Straand's innovative approach to scalp health, emphasizing natural and cruelty-free products, positions it well within an industry projected to reach a valuation of $102 billion by 2025. The brand's founders, Jeremy Hunt, Sarah Hamilton, Tim Brown, Nick Morris, and Meagan Pate, have leveraged their collective expertise to create a brand that resonates with contemporary consumer demands for wellness-infused beauty solutions.
7. Makeup by Mario's Growth Investment
Makeup by Mario received a $40 million minority growth investment from Provenance, a private investment firm, and Silas Capital, an emerging growth equity and venture capital firm. This financial boost aims to fuel the brand's accelerating momentum at Sephora, enhance product development, and expand its nascent e-commerce channel. With this investment, Makeup by Mario is poised to solidify its position as a leader in the cosmetics category, building upon its reputation for high-quality, transformative products and Dedivanovic's influential artistry.
8. Thirteen Lune's Seed Plus Investment Round
Thirteen Lune raised $8 million in a seed plus investment round, with participation from The BrainTrust Fund. A significant milestone for the company co-founded by Nyakio Grieco and Patrick Herning. This injection of capital will support Thirteen Lune's mission to provide a platform that celebrates and caters to diverse beauty consumers, furthering its commitment to inclusivity within the beauty industry.
9. GPA Global's Acquisition of Cosfibel Group
American packaging manufacturer GPA Global acquired France-based luxury packaging maker Cosfibel Group. Cosfibel is renowned for its expertise in luxury promotional packaging, gifting, and merchandising solutions, catering to an elite clientele that includes names like L'Oréal and Chanel. This acquisition not only enhances GPA Global's manufacturing capabilities but also expands its European footprint, with Cosfibel's facilities in Spain, Portugal, and Belgium playing a pivotal role. The deal was marked as GPA Global's second major acquisition since the Ontario Teachers' Pension Plan Board became a shareholder in September 2022.
10. L'Oréal's Investments
L'Oréal's venture capital fund BOLD made minority investments in Prinker Korea Inc. and French metaverse developer Digital Village. L'Oréal, through its venture capital fund BOLD (Business Opportunities for L'Oréal Development), has been actively investing in innovative companies. In 2023, BOLD made minority investments in Prinker Korea Inc., a company specializing in temporary tattoo devices, and Digital Village, a French startup operating in the metaverse space. These investments reflect L'Oréal's commitment to staying at the forefront of beauty tech and digital innovation.
11. Glowbar's Series A Funding
Glowbar received a $10 million Series A funding led by Peterson Partners. Glowbar, a skincare company known for its effective, professional-grade treatments, secured a significant financial boost with a $10 million Series A funding round in 2023. The round was led by Peterson Partners, marking the first instance of external capital for the brand, which had been self-funded until then. This investment is set to fuel Glowbar's growth and expansion plans, furthering its mission to help people feel confident in their skin.
12. Natura & Co's Sale of The Body Shop
Natura & Co sold The Body Shop to private equity firm Aurelius Investment for 207 million pounds. The transaction signifies a shift in strategy for Natura & Co, as it passes on the iconic British skincare and cosmetics retailer to the private equity firm. The Body Shop, known for its ethically-sourced products, is expected to continue its legacy under new ownership.
13. Aesthetic Partners' Minority Investment
Aesthetic Partners, a company operating within the beauty and wellness sector, received a minority investment from Norwest, a global investment firm. This influx of capital is anticipated to support Aesthetic Partners' continued growth and development in providing aesthetic services and products.
14. Element Eight's Funding Round
Luxe skincare brand Element Eight closed a $6 million funding round. It marks a pivotal moment for the luxe skincare brand, known for its innovative approach to biomedicine with its proprietary OATH™: Oxygen Amplified Therapy. With this infusion of funds, Element Eight is poised to expand its product offerings and solidify its presence in the competitive skincare market.
15. Zegna's Licensing Deal with Give Back Beauty
Zegna signed a licensing deal with Give Back Beauty for fragrance and cosmetics on November 6th, 2023, signing a long-term licensing agreement that encompasses the creation, production, marketing, and distribution of fragrances and cosmetics. This partnership signifies Zegna's commitment to extending its brand essence into the realm of beauty, entrusting Give Back Beauty with the task of translating Zegna's sartorial elegance into olfactory and cosmetic experiences.
16. E.l.f. Beauty's Acquisition of Naturium
E.l.f. Beauty acquired Naturium for $355 million. E.l.f. Beauty, a powerhouse in color cosmetics, made a landmark move by acquiring the science-backed clean skincare and bodycare line Naturium in a deal valued at $355 million, as announced on August 29th, 2023. This acquisition represents E.l.f. Beauty's largest to date and is expected to double the company's skincare presence, accounting for approximately 18% of its retail sales. Naturium, launched in 2019 and founded by Susan Yara, has garnered attention for its commitment to clean, effective products. With this strategic purchase, E.l.f. Beauty broadens its reach into the skincare domain, promising to leverage Naturium's innovative formulations and strong market position to enhance its overall brand offering.
17. Coty's Renewed License with Adidas
Coty renewed its license with Adidas, continuing a long-standing partnership. The renewal signifies a continued focus on personal care, wellness, sports, and sports lifestyle, with groundbreaking research into areas such as the impact of fragrance on sports performance. Coty has successfully elevated Adidas's body care equity through the launch of the Adidas Active Skin and Mind range, which features superior ingredients and sustainable packaging. This range has been met with positive consumer response, and Coty plans to build on this momentum with further innovations and lines aimed at growth in new and existing markets.
18. American Exchange Group's Acquisition of HatchCollective
American Exchange Group acquired HatchCollective. Known for their trusted range of beauty and personal care brands, including NatureWell, Found Active, Orlando Pita Play, TXTUR, and Paint & Petals, HatchCollective represents a significant step into the beauty and personal care space for American Exchange Group. This acquisition aligns with the company's overarching growth and lifestyle strategy, aiming to provide value to a broad consumer base.
19. Evolvetogether's Funding Round
Personal care brand Evolvetogether secured funding from True Beauty Ventures, G9 Ventures, and Gregg Renfrew. The funding round saw participation from True Beauty Ventures, G9 Ventures, and Gregg Renfrew. With this financial backing, Evolvetogether aims to continue its mission of impact and quality, offering cruelty-free products made with plant-and vitamin-powered ingredients and gender-neutral scents. The investment will likely fuel the brand's growth and expansion, allowing it to reach a wider audience and enhance its product offerings.
20. AS Beauty's Acquisition of Bliss World
AS Beauty added Bliss World to its portfolio. Bliss, a cruelty-free and planet-friendly skincare brand, joins AS Beauty's collection of beauty brands, which includes Laura Geller Beauty, Julep Beauty, Mally Beauty, and Cover FX. The acquisition of Bliss World is a strategic move by AS Beauty to diversify its makeup and skincare offerings, signaling the company's intention to broaden its reach in the beauty industry. With this addition, AS Beauty aims to leverage Bliss's reputation and market presence to strengthen its position as a leading player in the skincare segment.
21. Glamsquad's Minority Investment
Glamsquad received a minority investment from Boathouse Capital. This partnership aims to propel Glamsquad's expansion into new markets, leveraging its leading position as a provider of convenient, high-quality beauty services. With a presence in major cities like New York, Los Angeles, and Miami, Glamsquad's growth is set to accelerate, backed by Boathouse Capital's commitment to support the company's market and service vertical expansion.
22. Coty and Jil Sander's Renewed Licensing Agreement
Coty Inc. and Jil Sander renewed their licensing agreement. This renewal signifies a continued collaboration that marries fashion with fragrances, allowing both companies to pursue a shared vision of beauty. The partnership is expected to enrich the fragrance world with Jil Sander's distinctive quality and Coty's extensive expertise in the beauty sector.
23. Symrise's Investment in Ignite Venture Studios
Symrise participated in a Series A funding round for Ignite Venture Studios. This investment aligns with Symrise's ambition to strengthen its foothold in the beauty, health, and wellness sectors. Ignite Venture Studios specializes in incubating and investing in startup ventures within these industries, offering Symrise an opportunity to tap into emerging consumer trends and drive product innovation.
24. Kering Beauté's Acquisition of Creed
Kering Beauté acquired niche fragrance house Creed. This acquisition is a testament to Kering's commitment to establishing a robust presence in the luxury beauty segment. Kering Beauté plans to expand Creed's reach into new markets, including China and travel retail, while also exploring opportunities within the feminine fragrance, body, and home categories.
25. Curio Brands' Acquisition of Otherland
Curio Brands acquired candle company Otherland, a candle maker known for its appeal to Gen-Z and millennial consumers. Established in 2017 by Abigail Cook Stone, Otherland has recently experienced robust distribution growth. This acquisition by Curio Brands is poised to enhance its portfolio and capitalize on the burgeoning market for nostalgic and artisanal candle products.
26. Skin Pharm's Investment from Prelude Growth Partners
Skin Pharm received a $15 million investment from Prelude Growth Partners. This injection of capital is set to bolster Skin Pharm's growth trajectory, enabling it to expand its product offerings and market presence. Prelude Growth Partners' investment demonstrates confidence in Skin Pharm's potential within the competitive skincare industry.
27. Natura & Co's Increased Stake in Perfumer H
Natura & Co, through its venture capital fund Fable Investments, has increased its stake in Perfumer H, a bespoke fragrance house. This move signifies Natura & Co's intention to diversify its portfolio and strengthen its position in the luxury fragrance market. The increased stake will likely facilitate collaborative opportunities and innovation within the realm of personalized perfumery.
28. Givaudan's Acquisition of Amyris Ingredients
Givaudan acquired certain cosmetic ingredients from Amyris. This acquisition is part of Givaudan's strategy to enhance its capabilities in the active cosmetic ingredients space, leveraging Amyris's biotechnology expertise. The deal underscores Givaudan's commitment to offering innovative and sustainable solutions to its customers in the beauty sector.
29. Caliray's Series A Round
Sustainable beauty brand Caliray raised a Series A round led by True Beauty Ventures. Caliray, which was launched by Urban Decay founder Wende Zomnir in 2021, has been making waves with its eco-conscious approach, featuring products with clean formulas and recycled packaging. The brand has been on an upward trajectory since its inception, partnering with Sephora under its Planet Positive program and is expected to generate substantial retail sales by 2024.
30. IFF's Sale of Flavor Specialty Ingredients
International Flavors & Fragrances (IFF), a global leader in the creation of flavors and fragrances, made a strategic move by divesting its Flavor Specialty Ingredients (FSI) division. IFF entered into an agreement to sell FSI to Exponent, a UK-based private equity firm, for a sum of $220 million in cash. This business unit, known for producing base aromas primarily for the flavor market, is expected to transition to its new ownership by the end of the third quarter.
31. Oddity's Acquisition of Revela
Oddity acquired biotechnology startup Revela for $76 million. This bold move underscores Oddity's ambition to integrate cutting-edge AI-based biotechnology into its portfolio, further solidifying its position in the beauty industry. Additionally, Oddity is investing an extra $25 million towards establishing Oddity Labs in Boston, signalling a solid commitment to innovation and research.
32. True Beauty Ventures' Investment in Iris&Romeo
True Beauty Ventures, an emerging growth fund, has placed its confidence in Iris&Romeo, a clean beauty brand, by backing its Series A partnership. This investment aligns with True Beauty Ventures' portfolio, which includes other notable beauty entities. Iris&Romeo, which had previously raised $2 million in seed funding, is projected to close out 2023 with significant revenue, reflecting the brand's escalating success. The partnership with True Beauty Ventures is set to propel Iris&Romeo into new heights, including an anticipated entry into Sephora, marking a milestone in the brand's expansion strategy.
33. Estée Lauder's Stake in Melt Season
Estée Lauder Cos. took a minority stake in Chinese fragrance label Melt Season. This investment marks ELC's first foray into the Chinese fragrance industry, as reported on December 15th, 2023. The American beauty giant is aiming to tap into the growing fragrance category to counteract weakening demand in China. Melt Season, a luxury brand that was born and raised in China, represents an opportunity for Estée Lauder to diversify its portfolio and strengthen its presence in the Asian market.
34. Kao Corp.'s Acquisition of Bondi Sands
Kao Corp. signed an agreement to acquire Australian sun care brand Bondi Sands. The acquisition was made through Kao’s subsidiaries, Kao Australia Pty. Ltd. and Kao USA Inc. Bondi Sands, established in 2012 in Melbourne, Australia, specializes in self-tanning, sun care, skin care, and body products. With a strong market share in Australia and availability in over 32 countries, Bondi Sands aligns with Kao's values and principles, particularly in delivering innovative products and emphasizing skin protection.
35. Irene Forte Skincare's Investment from L Catterton
Irene Forte Skincare secured a minority investment from L Catterton. The investment will support Irene Forte Skincare's strategy to grow and invest in existing partners while also expanding into additional brick-and-mortar locations. L Catterton's involvement is set to bolster the brand's presence in the beauty market, leveraging the firm's extensive experience in consumer investments.
36. GlossGenius' Series C Funding
GlossGenius raised $28 million in series C funding led by L Catterton Growth Fund. Co-founded by CEO Danielle Cohen-Shohet and her twin sister Leah Cohen-Shohet, GlossGenius offers a "business in a box" service, streamlining operations for beauty and wellness sector entrepreneurs.
37. Bread Beauty Supply's Seed Funding Round
Hair care line Bread Beauty Supply raised a multimillion-dollar seed funding round led by Fearless Fund. With this injection of capital, Bread Beauty Supply plans to broaden its product line, enhance research and development, and extend its distribution channels, which already include prominent retailers like Sephora and Ulta, as well as its own e-commerce platform.
38. Coty's Stake Sale in Wella
Coty sold a 3.6 percent stake in Wella to IGF Wealth Management. This transaction amounted to $150 million and is part of Coty's broader plan to simplify its business structure and focus on its core offerings in Prestige Beauty and Consumer Beauty. Despite this sale, Coty retains a significant interest in Wella, holding onto a 22.3 percent stake valued at approximately $900 million, with intentions to fully divest by the year 2025.
39. OurX's Seed Round
OurX raised a $2.5 million seed round led by Reign Ventures. While specific details about OurX's business model and future plans are not provided in the context, the investment indicates a positive outlook for the company's trajectory.
40. Dibs Beauty's Investment from L Catterton
L Catterton, a leading consumer-focused private equity group with approximately $34 billion of assets under management. On April 28th, L Catterton made a substantial growth capital investment in DIBS Beauty, a burgeoning color cosmetics brand co-founded by Courtney Shields and CEO Jeff Lee.
41. Subtl Beauty Secures Investment from CULT Capital
Cult Capital made a $5 million Series A investment in Subtl Beauty. Rachel Reid, founder of Subtl Beauty, a pioneer in compact, convenient makeup, has just closed a Series A funding round with a substantial investment from consumer investment firm, CULT Capital. CULT Capital's $5mm investment is a strong vote of confidence in Subtl Beauty's mission to redefine consumers' beauty routines and challenge the industry's status quo.
