Foundation For Growth: Beauty M&A Deals On Track For Another Annual High

Beauty M&A Deals On Track For Another Annual High
By CB Insights.

Beauty brands, CPG companies, and private equity firms are snapping up beauty and cosmetics startups at record rates. We’ve already seen 39 beauty acquisitions in the first eight months of 2016, nearly as many as in all of 2015, when there were 41 acquisitions in the category. If M&A activity continues at its current rate, we may see 59 M&A deals throughout 2016, a 44% increase from last year.

This growth comes atop a significant jump in 2015, when deal count more than doubled to 41 from just 16 in 2014.

On the other hand, beauty IPOs remain uncommon. The sector saw just three IPOs over the past five years: cosmetics company Coty, which controls over 47 brands, in 2013; Chinese beauty e-commerce platform Jumei in 2014; and India’s cosmetic fragrance giant S H Kelkar & Company (operating as Keva) in 2015.

We have not seen any IPOs yet this year, although cosmetics brand e.l.f. Beauty filed for a $100M IPO on Aug. 26, 2016, and South Korea’s CLIO Cosmetics filed for an IPO in July.

Our beauty category includes brands producing and selling makeup, hair care, and skincare products, e-commerce platforms focused solely on beauty and cosmetics, and beauty services such as spas or on-demand hair styling apps. It does not include broad e-commerce platforms that happen to sell beauty products, or medical services.

Read more at CB Insights.

Be first to comment