It's not just holiday shoppers that are looking to spend — the beauty M&A markets are busier than ever this holiday season.Recent deals, including Eurazeo Brands' $70 million majority investment in Nest Fragrances and Beauty Partners' purchase of Coastal Salt & Soul, which were both revealed Thursday, underscore investors' continued appetite for beauty companies. The demand has lasted several years.The Nest transaction was the first deal from Eurazeo Brands, the New York-based consumer and retail fund of the Paris private-equity firm. The deal is also Eurazeo's first investment in a beauty brand. Eurazeo Brands is headed by chief executive officer Jill Granoff, a beauty and fashion veteran.
Founded in 2008 by Laura Slatkin, who is reinvesting in the business as part of the Eurazeo deal, Nest makes home scents and fine fragrances. The company is best-known for its candles, but also makes reed diffusers and launched a Liquidless Diffuser, which has scented sticks instead of reeds dipped in liquid, earlier in 2017. Industry sources said the brand will do between $70 million and $80 million in retail sales for 2017, up from between $60 million and $70 million for 2016. WWD previously reported Nest hired Moelis & Co. to conduct a sales process.
At a minimum, Granoff said she thinks Nest could double or triple the size it is today. “[There is] alot of runway for growth, both by increasing penetration with existing partners and existing categories, as well as layering on new distribution options and new geographies,” Granoff said. Right now, Nest is primarily focused on the U.S. market, but plans to use its new relationship with Eurazeo to guide which international markets might make sense down the line, according to Nest chief executive officer Nancy McKay. The company will also test stand-alone doors at some point, likely with pop-ups, Granoff said.
McKay, who joined Nest after a 28-year stint at the Estée Lauder Cos., also sees room to deepen and expand Nest’s product categories, she said. “We have quite a bit of opportunity within product offering and product categories to continue to be innovative within the home fragrance space, as well as disruptive…within the fine fragrance space,” McKay said. Nest’s fine fragrances portfolio includes 10 fragrances in eau de parfum, rollerballs and body creams.
For its next men’s wear collection, @roberto_cavalli will show as a special guest at #PittiUomo, running from June 12-15. The brand, which has Florence in its roots, will relaunch its men’s wear collection, which will be presented separately from women’s wear for the first time since Paul Surridge was appointed creative director in May. #wwdnews #wwdfashion (📷: @aitorrosasphoto)
“I was making the guacamole when my scout saw me,” says model @stuckinteenage on being discovered just six months ago while working at @chipotlemexicangrill. Since then Williams has signed with @dnamodels, walked in her first show at @calvinklein and landed on the cover of @vogueitalia – a high point of any model’s career. To read @lisajlockwood’s full interview with the model on her experiences thus far, head to WWD.com – link in bio. (📷: George Chinsee)
“I love the idea of dialogue, period. It’s where I’ve always gotten my inspiration from: hearing other women speak, their journeys and their paths,” said @hereisgina, who delivered the keynote speech during @sxsw for @createcultivate in partnership with @fossil. For her two panels, Rodriguez chose female empowering, female-led and female entrepreneurs to focus on. Head to WWD.com to read more about her thoughts on Time’s Up, growing up in a family of women and why we “need a girls’ club.” #wwdeye #sxsw (📷: @jgreenery)
Leading luxury brand are shaking things up to keep up with streetwear. Case in point: the arrival of @mrkimjones as artistic director of @diorhomme. Jones, who succeeds @Kris_Van_Assche, is seen as one of the handful of designers who can actually straddle the luxury and streetwear worlds — which could lead to even more changes at established brands. What could this mean for the rest of the menswear landscape? Head to WWD.com to find out what experts predict #wwdfashion (📷: @franckmura)
“It’s like buying groceries. You’re going to buy the best mango, the best mozzarella, the best things. You have to, or others are going to take it all,” said @gabrielahearst on why she uses only the finest fabrics. Last week, Hearst received her first @cfda nomination for Womenswear Designer of the Year, and earlier this month she opened a permanent showroom in Paris. To read @jessiredale’s interview with the designer and find out why this is shaping up to be a big year for her, head to WWD.com. #wwdfashion (📷: @francoisgoize)
“It’s an interesting thing, playing a younger version of your mother. It’s an interesting concept. I adore my mom and love her in every capacity, but it was just something that had never crossed my mind,” says @anniemstarke on playing a young Joan Castleman in “The Wife.” The same role will be played by her mother Glenn Close. Read more about her growing up in the film industry as the daughter of producer John H. Starke and Close and what she has planned for the future #wwdeye (📷: @nataliamantini)
@asics is launching a new streetwear sneaker inspired by its latest ambassador, @steveaoki. The Hyper-Kenzen x Aoki, which will launch at @footlocker stores exclusively tomorrow, is a slip-on style that incorporates the brand’s proprietary Gel technology through beads integrated into the midsole for comfort and endurance. Read the full story on WWD.com.