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.”
“What he has done at Vuitton is really exceptional,” said @gameofthrones’ actress Gwendoline Christie on @mrkimjones’ final show for @louisvuitton. “He has rebooted luxury in terms of making it commercial, viable and contemporary. And most importantly artistic. He has never compromised his artistic vision for the sake of commodity.” (📷: @zefashioninsider)
After seeing a demand for men’s wear from its customers, British contemporary women’s wear label @ariesarise has added a men’s wear component and will launch a unisex collection with @mrporterlive. The 20-piece collection includes jackets, denim, logo T-shirts and more with deconstructed ‘90s vibes. Set to launch on January 18, you can shop the pieces on Aries’ website and on mrporter.com. #wwdfashion
“And so spending so much time with a character who thinks like that, inevitability you try and analyze yourself and go back and think about your own demons and dark chapters that you had in your life,” says @thedanielbruhl of his role in TNT’s “The Alienist.” The show, set in the Gilded Age of New York, also stars Dakota Fanning and Luke Evans. Head to WWD.com to read about how 39-year-old Brühl prepared for the role and why he thinks the show is so relevant to today #wwdeye ( 📷: @Eriktanner)
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Among the familiar faces at @off____white’s show was a surprise figure: Japanese artist @takashipom, pictured here on Wednesday morning. Other show-goers included @jerrylorenzo, who spoke about his upcoming project: a @nike collaboration for back to school, with designs inspired by his childhood on the West Coast. Sitting in the front row were Future, Don Crawley, @miguel and more. See the rest of the photos on WWD.com #wwdeye (📷: Stephane Feugere)
According to @laurentsai, former “Terrace House: Aloha State” cast member, she didn’t know she was auditioning for the Japanese version of “Real World.” “I was telling a couple of my friends and someone’s like, ‘That sounds a lot like Terrace House.’ I was like, ’No it can’t be.’” Turns out, it was. But Tsai isn’t just a reality star — she’s an illustrator who has worked with Starbucks Japan and most recently, she’s dipping her toes into the fashion world. Head to WWD.com to read about her time on the show, modeling and her art. #wwdeye (📷: @danieldorsa)
More changes are coming to New York Fashion Week: Beginning with the spring 2019 collection, @alexanderwangny will move his New York show to June from September, adopting a biannual schedule with collections shown in June and December. Additionally, the @cfda is planning for an official summer/winter fashion season taking place as soon as June and December 2018. Read more about the upcoming changes on WWD.com. #wwdnews #wwdfashion (📷: @slovekinpics)