2017 may have only just begun but L'Oréal, Coty and Main Post Partners are wasting no time when it comes to making their first acquisitions of the year.
The deals were made in an astoundingly short 48 hour time span earlier this week and correspond to financial expert predictions regarding beauty industry acquisitions for the year ahead – essentially, that they're not going to slow down anytime soon.
L'Oréal reportedly shelled out $US1.3 billion to buy skincare brands CeraVe, AcneFree and Ambi from Canadian company Valeant Pharmaceuticals International according to reports by WWD. These fuss-free brands are not only firm favourites in the US but they're available at an accessible price point. Together, the trio generates a huge $US168 million every year.
Over at Coty, the company has just purchased a 60 per cent stake in privately held online cosmetics retailer Younique for around $US600 million. The Utah-based company runs on a unique business model where prestige skincare and makeup products are sold via peer-to-peer virtual 'parties' (think Tupperware parties but online) hosted by the business' 200,000 strong sales team. Yonique is projecting about $US400 million in net revenues for 2016 and under Coty will remain as a stand alone business in the Consumer Beauty Division.
Finally, to Main Post Partners who have invested an undisclosed sum in Milk Makeup. The brand, that focuses on launching products in transportable tubes and sticks, is set to begin global expansion later in 2017 thanks to the cash injection. WWD reports that Milk Makeup is approaching $US10 million in net sales and doubled in size in 2016.
