Despite a slight decline in deal volume in Q3’18, beauty care deal volume remained on pace for another record year, and the third year in a row with over 100 total M&A transactions. The quarter also witnessed a fairly equal mix between large strategic acquirers, highlighted by L’Oréal and Procter & Gamble (P&G), private equity-backed platform acquirers, and private equity growth and buyout investments.
In order to surpass 2017 beauty care M&A transaction levels for the year, the market will need to deliver 24 M&A deals in Q4’18—stay tuned.
Q3’18 Beauty Care M&A highlights include:
- Deal volume declined approximately 7% from Q2’18 and almost 4% from Q3’17.
- Deal volume is still up over 9% year-to-date 2018 versus last year.
- Large strategic acquirers continue to be active with deals announced by L’Oréal, P&G and The Hut Group.
- Private equity platform companies continue to make their impact on the M&A landscape with deals by Topspin-backed JD Beauty Group and Yellow Wood-backed Freeman Beauty.
- Private equity groups were active with notable deals from Alliance Consumer Growth and Eurazeo Brands, along with first-time beauty entrant Hammond, Kennedy, Whitney & Co.