BeautyMatter’s Post

More and more companies are considering going private in what has been a tumultuous period of retail. The privately held french brand L’OCCITANE Group owned by billionaire Reinold Geiger is latest petitioning to buy back their remaining shares with private equity Blackstone providing the debt financing. Most recently Nordstrom is also trying to take their company private. They most recently tried in 2017 to no avail. Why the desire to go private? With struggling sales and profits, firms want to get out from the glare of quarterly reporting on performance that is required by public companies and allow sufficient time to put strategies in place without the constant pressure of shareholders and especially rogue board members that pressure for sale or quick fix strategies. Unless you have a firm strategy in place it only buys time especially with debt financing from private equity firms. #businessnews #goingprivate #retail #businessstrategy https://lnkd.in/ewf9tgQw

Fascinating Financial Times article on family business succession and the upcoming IPO at Puig. Favourite quote, from Marc Puig: “A family functions with love but family companies require hierarchy and meritocracy. Sometimes when two systems combine, there are clashes.” #FamilyBusiness #Succession #IPO

Any M&A activity needs to include RESPONSIBLE OWNERSHIP test. March 27th, 1976 The Body Shop is founded by Anita Roddick, the eponymous campaigner for ethical products and no animal testing. In 30 years, Roddick presided over The Body shop's growth - Over 2000 stores present in more than 50 countries. March 16th, 2006, L'Oréal buys The Body Shop from Anita Roddick. On the day of sale, Roddick was convinced L'Oreal was going to be a responsible owner: "The campaigning, the being maverick, changing the rules of business - it's all there, protected," she said. "And it's not going to change. That's part of our DNA. But having L'Oréal come in and say we like you, we like your ethics, we want to be part of you, we want you to teach us things, it's a gift. I'm ecstatic about it. So I don't see it as selling out." Body shop expanded its retail footprint under L'Oreal but gradually looses its value proposition inside a large corporate which has competing offerings and no particular affinity to Roddick's cause. Other start-ups like LUSH once suppliers to The Body Shop power through market Jun 27th, 2017 L'Oréal sells The Body Shop to Natura &Co João Paulo Ferreira, Natura’s chief executive comments on the strategic rationale: “In a sense, Natura and The Body Shop are like twins. We have been walking parallel paths in the past, and today, those paths are converging. We both share a same vision of cosmetics, advocating the use of natural ingredients, seeking to use our business as a platform to raise environmental consciousness.” Nov 14th, 2023, Natura sells The Body Shop to Aurelius, a PE firm Feb 13th, 2024, Aurelius appoints administrators bringing the curtain down on a business which was set-up to do good. The Financial Times story unravels behind the scene mechanics of the deal. Why are we witnessing more value destruction rather than value creation? Rekindling 'the principles of responsible ownership' requires long-term orientation and this requires right ownership model. #stewardship #familybusiness #mergersandacquisitions

At the end of last year, former brand owner Natura &Co made a deal to sell The Body Shop to the AURELIUS Group. The new private equity owners are wasting no time making changes and shedding part of the European and Asian business to an international family office. This deal is a decisive step towards executing a turnaround strategy for the struggling business. #beautyindustry #beautybusiness #finance #privateequity

I recently spoke with Beauty Independent – reflecting on the 2023 Beauty M&A landscape, discussing recent transactions in the space, and sharing my thoughts for what may lie ahead for the industry this year.   Read the full article on the DC Advisory website here > https://bit.ly/3vUdPIQ   #DCAdvisory #US #Beauty #BeautyIndependent #mergersandacquisitions

Throughout 2023, beauty dealmakers were faced with one of the most challenging market environments in over a decade. Dealmaking bottomed out in Q3, when the BeautyMatter Deal Index tracked only 50 deals during the quarter and a record 10 bankruptcies and shutdowns. Activity picked up substantially, however, in Q4, perhaps an indication of a pent-up deal pipeline and renewed optimism as we head into 2024. The BeautyMatter Investment + M&A Transactions Year End 2023 report is available now. To download a free synopsis, visit: https://lnkd.in/epwkHZSf

If these activist investors have their way, one won't have any place to go to purchase products needed for their home or lives. I'm starting to get a vibe from these companies that are trying to do this and wonder if there is another ulterior motive to it all. #retail #venturecapitalists #activist #investors

L’OCCITANE Group Deal to possibly close at $7B in take private/LBO w/ Blackstone. By de-listing off the HK stock exchange the Group can get strategic investment for real value creation strategies (ie, breathing room). As PE has a lot of dry powder to deploy (with some estimates ranging north of 1.2 trillion), even with the current geopolitical issues and macro environment, we will likely see more take privates and other M&A deal activity this year in beauty/fashion/wellness and retail. #PE #MnA #beauty #wellness #fashion #valuecreation #LBO

Aurelius Group's acquisition of The Body Shop offers insights into the dynamics of private equity buyouts, especially in challenging retail environments. For business owners, key takeaways include the importance of maintaining a strong operational foundation, the potential for strategic realignment under private equity, and the necessity of understanding the implications of market valuation shifts. Such insights could be critical for those considering selling to or partnering with private equity firms. #businessstrategy #businessadvisory #mergersandacquisitions

In 2023, the beauty industry witnessed a flurry of mergers and acquisitions (M&A) as companies sought to expand their portfolios and capitalize on growth opportunities. Despite potential economic headwinds, the beauty market has demonstrated resilience and adaptability, with U.S. prestige beauty industry sales reaching $14 billion in the first half of the year—a 15% increase compared to the same period in 2022. High-profile transactions, including Procter & Gamble's acquisition of Mielle and e.l.f. Beauty's purchase of Naturium for $355 million shows the strategic importance of diversification and direct-to-consumer engagement. As we delve into the intricacies of the beauty M&A landscape of 2023, we'll explore how these deals are not only driving financial growth but also setting new standards for what constitutes an attractive investment in the beauty industry. Here is a comprehensive list of notable beauty M&A deals that took place throughout the year: https://lnkd.in/gHPgSRwJ #retail #fashion #businessnews #fashionindustry #retailnews #beautytrends #fashionnews #ecommerce #dtc #consumertrends #trends