Skincare Industry Acquisitions
The three large recent skincare acquisitions by major companies are the acquisition of Kylie Cosmetics by Coty, acquisition of Elemis by L’Occitane International, and acquisition of Drunk Elephant by Shiseido. Kylie Cosmetics was acquired by Coty for $600 million after four years in operation before acquisition. Elemis was acquired by L'Occitane for about $900 million that had been in operation since 1990.
LARGE RECENT ACQUISITIONS BY MAJOR COMPANIES
1. ACQUISITION OF KYLIE COSMETICS BY COTY
- Coty, the American conglomerate "bought a majority stake in the cosmetics and skincare brand, valuing it at $1.2 billion."
- On November 18, 2019, Coty acquired a 51% stake in Kylie Jenner's skincare brand, Kylie Cosmetics for $600 million.
- Kylie Cosmetics was founded in November 2015 and as published by Vogue Business, "amongst beauty brands, Kylie Cosmetics has the second-highest number of followers."
- Kylie Cosmetics is a four-year-old skincare startup that has generated net revenue of $177 million over the past 12 months.
- In July 2018, Kylie Cosmetics reported a decline in revenue by 68%; however, later the brand recovered itself slightly "in the following 12 months. "
- In 2018, Kylie Cosmetics' revenue was $177 million representing an increase of "more than 40% over 2018’s calendar year."
2. ACQUISITION OF ELEMIS BY L'OCCITANE
- L’Occitane International SA has acquired a privately held beauty and skincare brand Elemis on Jan 13, 2019.
- The British skincare brand Elemis was acquired for about $900 million by L'Occitane and it is the "biggest deal on record as the maker of organic lotions looks to expand in the US and the UK."
- Elemis was founded in 1990.
- The company was valued high at $900 million.
- In 2018, Elemis' revenue was reported to be $140 million while in 2019, the revenue has reached $185 million.
3. ACQUISITION OF DRUNK ELEPHANT BY SHISEIDO
- Elemis is the luxury cosmetics company listed in Hong Kong.
- On October 8, 2019, Shiseido, the "Japanese beauty giant" has acquired Drunk Elephant which is a US skincare brand.
- Shiseido acquired 100% stake in Drunk Elephant for $845 million.
- Drunk Elephant reported sales of $150 million in 2018 before the acquisition in October 2019.
- Drunk Elephant is a US skincare brand that was founded in 2012. Tiffany Masterson was the founder of Drunk Elephant.
- Drunk Elephant has been a popular brand "among millennial and Gen Z consumers for its non-toxic ingredients and Instagram-friendly packaging."
- According to Forbes, "Drunk Elephant was said to be hoping to fetch a valuation of more than $1 billion."