There seems to be no beauty bubble in sight. According to industry insiders, Beauty M&A is predicted to continue its hot streak through 2019. The number of transactions remains high and values increase creating challenges for potential acquirers as a result. The first quarter did not disappoint with Glossier, Hims and Calm all reach unicorn status in new rounds of funding.
Susan Babinsky, Senior Vice President of Kline Group, says: “The flurry of M&A activity over past several years has reduced the pipeline of good sized opportunities (eg $100m- plus brands or companies) thus companies are snatching up small and sometimes less proven businesses—often for quite a premium.”
Q1 2019 Summary:
Glossier, Hims and Calm all reach unicorn status in new rounds of funding.
Skincare has replaced color cosmetics in both category growth and investment activity.
While the disruptive quality of DTC brands may have ebbed investment continues to flow.
This quarter we started to see transactions in the new CBD category with Bebeo being acquired, platforms Prima and Standard Dose receiving funding and LB Equity creating a new CBD focused fund.
An uptick in activity down the full beauty supply chain.
Inside The Report:
A compilation of the quarters transactions with full transaction insight in our Who, Why, In Their Own Words, Details format
Aggregated content for each transaction providing history and context
An easy to reference summary chart including transactions by category with high level details.