Cosmetics companies Coty and L’Oreal M&A Activity
Photographer Adrianna Calvo instagram.com/grayndsoul

It’s only midweek and cosmetics companies Coty and L’Oreal have the industry buzzing with acquisition news.  The M&A trend in beauty continues in 2017.

Coty Expands E-Commerce Capability: To Acquire 60% Stake in Younique

Coty announced that it has entered into a partnership with Younique, a leading online peer-to-peer social selling platform in beauty. Under the proposed agreement, Coty will acquire a 60% stake in Younique for $600 million in cash.  Younique’s Founders — siblings Derek Maxfield and Melanie Huscroft — will own the remaining 40% and continue to lead the business in the new partnership.

Founded in 2012, Younique’s makeup and skin care products are sold through its peer-to-peer e-commerce platform. This platform enables Younique’s community of independent presenters to leverage social media to in the marketing and distribution its products directly to consumers.  Younique ’s scalable technology platform is built for mobile-first e-commerce.  The company has approximately 200,000 active presenters and over 4.1 million consumers in 10 countries, including the U.S., U.K., Canada, Australia, New Zealand, Germany, Mexico, France, Spain and Hong Kong.  Younique expects to generate approximately $400 million in net revenues in 2016.

Camillo Pane, Coty’s Chief Executive Officer, said, “Derek and Melanie are tremendous entrepreneurs who have built one of the most engaging and fastest growing e-commerce companies in beauty. Alongside the rest of Younique’s team and in partnership with their presenters, they have been able to impact the lives of millions of consumers across a number of countries with a mission to uplift and empower women. We look forward to working with them to continue supporting this mission and building Younique into a leading global e-commerce beauty company.”

Younique will operate as a separate business within Coty’s Consumer Beauty division. It will continue to be led by its current CEO, Derek Maxfield, Chief Visionary Officer, Melanie Huscroft, and Younique’s management team, in partnership with Coty.

L’Oréal Signs Agreement with Valeant to Acquire CeraVe and Two Other Brands

L’Oréal announced the signing of a definitive agreement with Valeant to acquire the skincare brands CeraVe, AcneFree and Ambi for a cash purchase price of $1.3 billion US dollars.

CeraVe was founded in 2005 and offers a range of advanced skincare products, specifically cleansers, moisturizers, sunscreens, healing ointments and a dedicated baby line. Developed with dermatologists, CeraVe is one of the fastest growing skincare brands in the U.S. with average growth over the past two years exceeding 20%. CeraVe’s multi-channel distribution strategy includes drug stores, mass and beauty retailers, and select online outlets.

AcneFree markets and distributes a full range of OTC cleansers and acne treatments in the U.S., Ambi distributes skincare products formulated for the needs of multicultural consumers. Both brands are distributed in drug stores, mass retailers and select online outlets.

The three brands have annualized combined revenue of approximately $168 million US dollars.

“The acquisition of CeraVe, AcneFree and Ambi strongly complement L’Oréal’s brand portfolio,” said Frédéric Rozé, President and CEO of L’Oréal USA. “These three brands, built on strong relationships with health professionals and widely distributed, will nearly double the revenue of our Active Cosmetics Division in the US and will help us satisfy the growing demand for active skincare at accessible prices.”

CeraVe, AcneFree and Ambi will become part of L’Oréal’s Active Cosmetics Division, which includes brands such as La Roche-Posay, Vichy and SkinCeuticals that are developed with and endorsed by health professionals – dermatologists, pediatricians and other physicians.

The closing is subject to the standard regulatory approvals and other customary conditions.

 

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