In less than two months, Procter & Gamble (P&G) has made its third prestige beauty acquisition, snapping up Tula Skincare.
WHO: Co-founded in 2014 by Dr. Roshini Raj, a board-certified gastroenterologist and internist with a medical degree from New York University's School of Medicine; Ken Landis, a co-founder of Bobbi Brown Cosmetics; and Dan Reich, a tech entrepreneur, Tula's groundbreaking approach to skincare leverages the power of probiotics to improve the overall health and appearance of the skin.
Headquartered in Cincinnati, Ohio, Procter & Gamble is a Fortune 500 company and the global leader in Consumer Packaged Goods. P&G serves nearly 5 billion people around the world with its multi-category portfolio, which spans beauty, healthcare, grooming, fabric and home care, and baby, feminine, and family care. P&G's brands are widely recognizable, including Crest, Febreze, Gillette, Head & Shoulders, Olay, Pantene, SK-II, and Tide.
WHY: P&G appears to be making a move in prestige beauty, adding Ouai, Farmacy Beauty, and Tula Skincare to its existing portfolio of SK-II and First Aid Beauty and going head-to-head with L'Oréal, Unilever, and Estée Lauder.
IN THEIR OWN WORDS: "When we look at our beauty strategy, we want to win in beauty in the categories we choose to play in—skin, hair and personal care, categories where the clinical performance of the products makes a difference," Markus Strobel, President of Global Skin and Personal Care, told WWD. "We want to win in the industry—in different channels and segments. Wherever we feel that there is a gap in our portfolio, then we want to close it. The prestige beauty channel is growing double digits so it is a channel where we want to have a stronger presence with a tight portfolio," he continued, "a portfolio that covers the key benefit spaces that we feel will be growing in the future."
“We are really at an inflection point as a brand," Tula Chief Executive Officer Savannah Sachs told WWD, "We have an incredibly talented team whom I'm humbled to work alongside. Yet we feel we are just getting started and scratching the surface of long-term opportunity. We have stayed very focused to date. As we look ahead to driving continued growth, there is so much white space.”
“Tula represents some of the major trends that we are seeing in skin care today—efficacious products with an ingredient story that taps into health and wellness and a culture of inclusivity and skin positivity," said Jon Owsley, Managing Partner of L Catterton's Growth Fund. "From the beginning of the company's discussions with P&G, it was clear that P&G understood the essence of the brand and shared in the vision and mission.”
- Procter & Gamble acquired Tula Skincare. The terms of the deal were not disclosed.
- WWD reported Tula was on track to reach about $150 million in net sales for 2021.
- It has been reported that Tula is the fastest-growing prestige brand at Ulta Beauty and that about half its sales are direct-to-consumer.
- Tula Chief Executive Officer Savannah Sachs will stay on board to lead the company under its new ownership.
- According to Crunchbase, the brand raised a total of $12.2 million.
- In 2017 the business received significant growth capital investment from L Catterton. This transaction represents another successful exit for L Catterton, whose current beauty portfolio includes investments in Il Makiage, Function of Beauty, and Kopari.
- This transaction is the third and largest beauty deal since November 2021. P&G acquired Farmacy Beauty, which was about half the size of Tula, and Ouai, which was one-third the size.
- Financo Raymond James was the exclusive financial advisor for Tula.
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