No Stopping Beauty Care M&A as Markets Keep Pace in Q3’19 for Another Record Year

The Beauty Care M&A market posted 28 transactions in Q3’19. While M&A transaction volume was down versus a record 33 transactions in Q2’19, deal volume increased more than 8% over Q3’18. The quarter brought year-to-date volume to 89 transactions, an increase of 9% over the same period last year.

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Q3’19 witnessed two transactions with enterprise values of over $1 billion – following two billion-dollar deals in the previous quarter. Strategic acquirers also remained active with acquisitions by Colgate-Palmolive, Henkel and S.C. Johnson along with the entry of Cronos Group into the CBD skin care sector. The quarter saw strategics on the sell-side with the sale of the Salon Liquids Division of Conair and sale of the Younique brand by Coty.

The third quarter brought heightened activity from private equity groups both on the sell-side and buy-side following a slow financial sponsor quarter in Q2’19. The quarter witnessed multiple private equity to private equity deals including Topspin’s acquisition of Japonesque from San Francisco Equity Partners, General Atlantic’s acquisition of Morphe from Summit Partners, and Castle Harlan and Branford Castle’s acquisition of Sunless from The Riverside Company – alongside investments from Prelude Growth Partners, VMG and Transom Capital.

Given deal rumors, market momentum and a peek into fourth-quarter deal activity, 2019 is set up to be another record year in beauty care M&A deal volume.

Q3’19 Beauty Care M&A highlights include:

  • Deal volume was up 8% versus Q3’18 but down 15% versus record deal volume in Q2’19.
  • Strategic acquirers remained active with deals announced by Colgate, Henkel, S.C. Johnson and Cronos Group.
  • Strategic acquirers were sellers in the quarter with announced divestments from Conair and Coty.
  • Private equity groups were both sellers and buyers with notable investments by Topspin Partners, General Atlantic, VMG and Prelude Growth Partners and exits from San Francisco Equity Partners, Summit Partners and The Riverside Company.

Steve Davis
Managing Director
Head of Beauty & Personal Care
sdavis@intrepidib.com