Big Beauty Care Deals, Additional Strategic Acquirers Enter the Mix, and More

The Beauty Care sector posted a terrific quarter with 27 deals disclosed in Q2’16, the highest level of deal activity in over four years. It was only last quarter when we discussed a lack of marquee beauty care transactions and the high volume of small deals—what a difference a quarter makes. In Q2’16, not only was deal volume strong, but the quarter witnessed two major deals, the re-entry of several long-absent strategic buyers, and robust private equity activity.

Q2’16 Beauty Care M&A highlights include:

  • Deal volume increased 22.7% in Q2’16 from Q2’15 and 17.4% over Q1’16.
  • Johnson & Johnson made major moves in beauty care with the $3.3 billion acquisition of OGX and purchase of NeoStrata.
  • Revlon agreed to acquire Elizabeth Arden only six months after Ron Perelman’s disclosure that he was exploring strategic alternatives for Revlon.
  • Shiseido re-entered the beauty care M&A landscape with the acquisition of Laura Mercier—its first acquisition since Bare Escentuals in Q1’10.
  • Private equity continued its beauty care run with acquisitions by Clayton Dubilier & Rice, Yellow Wood Partners, Riverside Company, Harvest Partners, and Gauge Capital.

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