The world’s top cosmetic companies have signed a $1.5bn agreement to sell their brands to a private equity firm for $2.5 billion, including Aussie Skin Care.
Key points:The deal will see Skinny Rich’s brands including Anastasia Beverly Hills, Alyssa Milano and Lancome and New Look’s brands, including L’Oréal and Clinique, join the private equity fundThe deal comes as the cosmetics industry braces for a wave of new products including skin-care products and facial treatmentsThat the deal is worth $1 billion is significant, according to experts and analysts.
The deal, which will see Alyssas Beverly Hills and Alyssaa Milano join the privately-owned SkinnyRich fund, was announced on Monday by SkinnyRidley.
The skin-lightening company has been hit hard by the collapse in the value of its stock.
It has also struggled to find investors after the global economic downturn, and the deal has given it a boost as it struggles to keep its business afloat.
It is the first major skin-products deal in Australia, and it comes as other brands are expected to join the fund.
New Look is the most recent big-name brand to announce a deal, and Ayla Milana, who was previously CEO of Skinnyrich, said the deal will bring in the cash that the firm has lost from the collapse of the global economy.
“Our skin-lighting business is currently operating at a significant loss,” Ms Milana said in a statement.
“While our skin-based products are very popular, we also need to continue to grow our sales to ensure we continue to deliver on our strong performance.”
We will continue to work closely with Skinny Rydley to identify and attract potential investment opportunities for our brand.
“SkinnyRich is a private company with an ownership stake in New Look.
The New Look deal will also see the skin-conscious brand take a bigger share of sales in Australia.
It will make up 40% of sales and 45% of gross profits.
It has long struggled to attract big-ticket retailers such as L’Oreal, Estée Lauder and CVS, who have been heavily outstripped by the popularity of its products.
L’Orèal has also been hit badly by the rise in beauty and skincare products and it has been heavily criticised by consumers and politicians for poor performance.
New look is expected to have a stronger financial position and higher revenue growth than the other cosmetics brands, said analysts at research firm Kantar Worldpanel ComTech.”
It is a major boost for the company, and should also be good for the other brands, too,” said Kia Meehan, an analyst at KDA.”
The new deal will be beneficial to both brands as it will allow them to compete better with the other companies and increase their sales and profitability.
“AlyssaMilano is the latest beauty and skin-focused brand to be bought out by private equity funds.
Herlihy Cosmetics is also a beauty and body care company.
NewLook also has a growing presence in the US, with brands including MAC Cosmetics and Benefit, but it is unclear if the deal would extend to the US.
The Skinny rich deal will allow Skinny Riches to diversify its sales and to keep the company focused on its core business, Mr Milana added.”
Skinny Rich is an Australian company that has been focusing on our core business of skin care and beauty,” he said.”
I think it is a great deal for us, and I think it will give us the opportunity to continue our growth.
“The deal also means that the private-equity firm, which is based in Singapore, will not need to comply with the laws governing publicly traded companies.
Newlook has been operating as an Australian publicly-listed company for the past five years.
Its stock closed at $3.70 on Monday.
AlyssaaMilana said the new deal was an opportunity for the two companies to diversified their sales.”
Topics:health,health-administration,skin-care-facilities,business-economics-and-finance,business,health,industry,princess,united-states,sydney-2000More stories from New South Wales”
This will give our brand a new platform to grow, expand and deliver better products.”
Topics:health,health-administration,skin-care-facilities,business-economics-and-finance,business,health,industry,princess,united-states,sydney-2000More stories from New South Wales