After a spate of big beauty deals this year, the thrill is gone from the mergers and acquisitions activity — for the time being, anyway.
“There’s nothing left to buy,” one investment banker recently lamented to a peer.
After all, a number of prize assets hit the market in 2010 — no doubt due to pent-up demand as companies waited out the worst of the recession and then maneuvered to beat out pending tax legislation. The year was marked by megadeals, including Shiseido Co. Ltd. buying Bare Escentuals for $1.7 billion and Unilever’s bid to acquire Alberto Culver Co. for $3.7 billion, along with Coty Inc.’s recent purchases of both Philosophy and OPI Products Inc. for roughly $1 billion each. Among the other acquisitions that caused a stir this year — and there were many — were the Estée Lauder Cos. Inc.’s purchase of Smashbox Cosmetics, and a string of nail care deals, including L’Oréal USA’s Essie Cosmetics buy and the aforementioned OPI acquisition. More deals in nail care are potentially in the offing, as interest circulates around Orly and Creative Nail Design, which is a fixture backstage at Fashion Week but perhaps not on consumers’ minds. CND is owned by the Barcelona-based Colomer Group, which some industry watchers said could be an acquisition target itself.
“The big deals are done for awhile,” said one banker. “But I would expect a few surprises in the first quarter.”
There are a number of companies in the $20 million to $50 million range to be had, and these firms are often prime targets for private equity firms. Private equity firms continue to focus on beauty. For instance, Encore Consumer Capital invested in Tarte cosmetics in May. Bankers named a handful of beauty firms exploring their growth options, including Laura Geller cosmetics and Peter Thomas Roth skin care and Serious Skin Care sold on HSN.
“It’s going to be harder for bankers in 2011. There are fewer big properties,” said one financial player. “Most bankers are feeling naked right now going into next year.”
My character, Dinah Madani, is just the coolest, [most] badass woman imaginable," says @amberroserevah. The actress stars in @marvel's newest series on @netflix, @thepunisher. To prepare for her role, Revah sat down with Homeland agents to get a real sense of with Dinah's day-to-day life is really like. Read our full interview on WWD.com. #wwdeye (📷: @jilliansollazzo)
A scene from the 91st annual @macys Thanksgiving Day Parade. The parade, which boasts 50 million TV viewers and 3.5 million on-site spectators, is considered one of the largest and most watched parades in the world. (📷: Jason Szenes/EPA-REX)
The circus came to @bloomingdales 59th Street on Tuesday night and lit up Lexington Avenue with acrobatic dancers, death-defying knife throwing, sword swallowing and aerial acts with no net. The 45 minutes of theatrics built up to unveiling the holiday windows depicting @swarovski crystal-encrusted circus pieces and scenes from “The Greatest Showman” – songs from the soundtrack included. See the rest of the photos on WWD.com #wwdfashion (📷: Joshua Scott)
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@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion (📷: Dominique Maître)
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)