Kao USA announced it has signed an agreement to acquire Oribe Hair Care from Luxury Brand Partners. While the terms of the transaction were not released, industry sources estimated Kao will pay between $400 million and $430 million for the brand. It’s worth mentioning that Oribe has had a strategic alliance with Kao’s Goldwell brand, which has been focused on education, professional support, and marketing since 2015.
WHO: Oribe was founded in 2008 by iconic hairstylist Oribe Canales with Daniel Kaner and Tevya Finger of Luxury Brand Partners. The brand has managed to navigate and set the standard for both professional hair care and prestige distribution channels, becoming an authority for experienced stylists and taste-driven consumers. The brand’s assortment includes a full lineup of hair products, but also body care, makeup, and nail polish priced between $14 for travel-sized shampoo to $226 for a hairbrush.
Luxury Brand Partners develops and nurtures prestige artist-driven beauty brands, with a focus on innovation and a passion for the creative mind. With offices in Miami and New York City, their portfolio of companies offers high-performance products and top-of-the-line education informed by both an artistic and a business perspective. Luxury Brand Partners includes R+Co, Smith & Cult, IGK, V76 by Vaughn, and Pulp Riot.
Kao Salon Division is part of the Kao Beauty Care Business Division offering salon-exclusive products and services to stylists around the globe. It is a thought and trend leader in the professional hair care industry as well as the home of the Goldwell and KMS brands. The mission of Kao Salon Division is to enrich the lives of stylists, salon owners, and their clients through partnership, salon business growth, and a salon-exclusive portfolio of advanced services, innovative products, and inspiring education.
IN THEIR OWN WORDS: “Oribe is a stellar brand and a perfect fit for the Kao Salon Division portfolio,” said Cory Couts, Global President, Kao Salon Division. “And Daniel will be an exciting and inspiring addition to our management team. Daniel’s appointment not only guarantees the continuity of all that is extraordinary about Oribe but is also a progression of our company’s mission to appeal to the most artistic and business-minded salon professionals in the world.”
“Kao is the ideal place for Oribe Hair Care to take the next step in its transformative journey,” said Kaner. “I have a deep respect for their organization and talented leadership team. Our friendship and business relationship goes back years, most successfully with the strategic alliance in the United States between Oribe and Goldwell Color. We have always believed that hair care should be an immersive and luxury experience, and Kao is incredibly supportive of the high standard that we set for ourselves.”
“With its focus on luxury products, Oribe will meet the need for a prestige line in the Kao Salon product mix,” continued Couts. “And, the extensive global distribution network of Kao Salon Division will enable Oribe to expand internationally.”
“It is a bittersweet moment to say goodbye to a brand that Oribe Canales, Daniel Kaner and I founded and created almost ten years ago,” said Tevya Finger, CEO of Luxury Brand Partners. “I am extremely proud of what Oribe Hair Care has been able to accomplish since its inception, and I look forward to watching Kao develop the brand on a global scale.”
- The terms of the deal were not disclosed.
- According to WWD, industry sources estimated Kao will pay between $400 million and $430 million for the brand.
- Sources estimated Oribe has between $85 million and $100 million in sales, with $30 million in earnings before interest, taxes, depreciation and amortization.
- Oribe is said to have about $30 million in earnings before interest, taxes, depreciation, and amortization.
- Oribe will join the Kao Salon Division portfolio of professional brands, including Goldwell and the KMS.
- Daniel Kaner, co-founder and currently co-president of Oribe Hair Care, will be named president of the newly acquired entity.
- Oribe Canales indicated he plans to be part of the Oribe team going forward.
- The Oribe business will remain under current management, based in New York City and reporting to Kao Salon Division.
- This is the second divestment for Luxury Brand Partners, following its sale of Becca to Estée Lauder in 2016.
- Luxury Brand Partners plans to reinvest the money from the Oribe sale into making new, artist-driven brands.
- The Sage Group, LLC served as the exclusive financial advisor to Oribe Hair Care.
Photo: via Oribe.com