As expected, M&A volume in the Beauty Care industry rebounded in Q4’20 with 29 deals, up over 50% from Q3’20 and only one transaction shy of robust and pre-pandemic levels in Q4’19. Deal volume was driven by the relaunches of select M&A processes previously on hold, the launch of new processes from the Fall, and the re-engagement of most strategic and private equity acquirers in the Beauty Care sector.
The quarter was dominated by private equity activity, including deals by The Carlyle Group, Main Post Partners, Blackstone, L Catterton, and Prelude Growth Partners. In addition, the quarter witnessed some interesting strategic combinations, including The Hut Group’s acquisition of Dermstore.com and the merger of subscription box leaders IPSY and BoxyCharm. Finally, L’Oréal capped off a busy year in M&A with the acquisition of Takami just before the close of the year.
Intrepid also closed the year with a flurry of Beauty Care M&A deals, having advised on three closed transactions in November and December alone. Intrepid served as the exclusive advisor to leading men’s personal care brand Every Man Jack on its majority equity investment by The Carlyle Group; Westhook Capital in its investment in RainShadow Labs, a full-service provider of private label manufacturing services to natural and organic personal care brands; and a yet to be announced equity investment in a fast-growing direct-to-consumer beauty care brand.
Based on strong underlying fundamentals, current deal momentum, the return of acquirer interest, and a building deal backlog, Intrepid expects a continued rebound in deal activity in early 2021 and a strong year for Beauty Care M&A.
Q4’20 Beauty Care M&A highlights include:
- Deal volume was up 53% from Q3’20 and down slightly from pre-pandemic levels in Q4’19.
- Private equity groups led the quarter with deals announced by The Carlyle Group, Main Post Partners, Blackstone, L Catterton, and Prelude Growth Partners.
- Strategic buyer activity was light but highlighted by prolific Beauty Care acquirers L’Oréal and The Hut Group.
- Intrepid advised on three successful Beauty Care M&A deals in November and December alone.