The Beauty Care M&A market kicked off 2017 on a positive note and continued the streak of nine quarters with increases over the prior year period. Deal volume in Q1’17 increased 9% over Q1’16 and was up 4% over Q4’16. Strategic acquirers continued to be active with deals announced by traditional consolidators such as L’Oréal, Coty and Henkel. In addition, private equity groups stepped back in the beauty care M&A mix with deals announced by VMG, Main Post Partners and two by L Catterton.
Based on strong underlying fundamentals, deals in the market, deal volume in Q1 and our own backlog, we think that 2017 will be another hot year for beauty care M&A.
Q1’17 Beauty Care M&A highlights include:
- Deal volume rose 9% in Q1’17 from Q1’16 and 4% from Q4’16.
- L’Oréal continues to be the one beauty care acquirer that is active every year—already racking up the $1.3 billion purchase of skin care brands from Valeant.
- Activity continues in the professional hair care sector with the acquisition of Keratin Complex and Henkel’s purchase of Pravana.
- Coty makes an investment in the direct sales channel with the acquisition of 60% of online peer-to-peer seller Younique.
- Church & Dwight makes a move in beauty care with the acquisition of hair restoration brand Viviscal.
- Private equity activity rebounds with deals from branded consumer and beauty care veterans L Catterton, Main Post Partners and VMG.