Glossier Faces No Exit in Rare Beauty M&A Downturn
This year hasn’t quite lived up to the expectations we had for beauty M&A deals. While we did see some major transactions, like Charlotte Tilbury and Puig acquiring a majority stake in Dr. Barbara Sturm and Helen of Troy buying Olive & June, there hasn’t been the flurry of activity we were hoping for. Companies like Rare, Glossier, and Makeup by Mario, which were all considering exit strategies, are still waiting for the right opportunity.
One reason for this slow year in beauty mergers and acquisitions is the disconnect between sellers and buyers over valuations. Strategic investors are hesitant to make big moves, and some like Estée Lauder and L’Oréal are dealing with their own economic challenges. Summer Fridays, for example, turned to private equity after its viral success scared off strategic investors. Osea, a skincare brand with significant revenue, came close to a deal with Shiseido but it fell through.
Overall, the industry’s M&A scene has been described as “depressing” by a top banker. While there have been some deals and acquisitions, the year has not lived up to the hype. Hopefully, as economic conditions improve, we’ll see more activity in the beauty M&A space.
