5 private equity deals as firms find beauty in cosmetics

Aurelius, Advent International, HIG Capital, Investindustrial and Keensight Capital are among the private equity firms playing in the sector.

With Christmas approaching, many of us will turn to the old favourite of perfumes and aftershaves to satisfy the hard-to-buy-for on our gift lists. But it seems that private equity has been doing its shopping early, with PE Hub Europe covering several deals in the cosmetics sector this year.

That might come as a surprise. With inflation eating into shoppers’ spending money, many consumer sub-segments have struggled. But investment banking sources have told us that the cosmetics sector has been resilient – whether that’s down to Instagram or some other factors is hard to say.

Whatever the reason… we’ve made a list, we’ve checked it twice, we’ll let you choose which deals were nice (we’ve just put them in reverse chronological order).

1. Aurelius to add the Body Shop to portfolio

Aurelius agreed in November to acquire The Body Shop International, a global beauty brand and retailer, from Natura & Co.

The purchase agreement valued The Body Shop at £207 million ($254.5 million; €237.3 million), including an earn-out of £90 million, subject to certain conditions.

2. Keensight-backed Lisam Systems picks up EcoMundo

Keensight Capital-backed Lisam Systems acquired EcoMundo, a regulatory and compliance software provider, in October.

Lisam will expand its services beyond chemicals-focused services by integrating EcoMundo’s cosmetic-focused SaaS services into its software suite, according to a release.

3. Investindustrial signs for 51% stake in Virospack

Investindustrial agreed to acquire 51 percent of Virospack, a cosmetics dropper manufacturer, in September.

Virospack develops cosmetics dropper packs for skincare, hair, nails and liquid make-up. The company’s export sales are more than 90 percent of total annualised revenues of around €60 million. It is based in Barcelona, Spain.

4. Advent International to buy Parfums de Marly and Initio Parfums Privés

Advent International agreed in June to acquire a majority shareholding in Parfums de Marly and Initio Parfums Privés, two French perfumery houses, from its founder Julien Sprecher.

Advent will support the management team’s plan to accelerate international growth and strengthen its omni-channel strategy, according to a release.

5. HIG Capital adds Pinalli to its beauty kit

HIG Capital in February secured a controlling stake in Pinalli, a distribution platform for beauty and personal care (BPC) products.

Pinalli, based in Fiorenzuola d’Arda, Italy, has e-commerce platforms for luxury BPC products in Italy.

With inflation falling in many European countries and consumers potentially having more spending money in their pockets, it could be that next year is even better for private equity deals in the cosmetics sector.