Coty Inc.’s acquisition spree continues, this time with the company buying a majority stake in beauty company Younique for $600 million.
Younique, founded in 2012 by siblings Derek Maxfield and Melanie Huscroft, creates and sells makeup and skin-care products through peer-to-peer social selling — essentially, a virtual Tupperware party but for Younique’s products. The process combines its sales force, called independent presenters, with the company’s technology platform, which specializes in mobile-first e-commerce.
Younique has about 200,000 presenters, and anticipates generating $400 million in net revenues for 2016. The company sells Moodstruck 3-D Fiber Lash mascara, $29; Touch Glorious Face Primer, $39, and Royalty Time Correcting Night Cream, $49, as well as other skin-care, makeup and body-care products, all under its own brand.
Under Coty, which recently closed the $11.4 billion deal for Procter & Gamble’s specialty beauty portfolio, the plan for Younique is global expansion. Younique is already available in 10 countries: the U.S., U.K., Canada, Australia, New Zealand, Germany, Mexico, France, Spain and Hong Kong. Younique will operate as a separate business under Coty’s Consumer Beauty division, with Maxfield continuing as chief executive officer and Huscroft as chief visionary officer.
“Derek and Melanie are tremendous entrepreneurs who have built one of the most engaging and fastest-growing e-commerce companies in beauty,” said Camillo Pane, Coty ceo. “Alongside the rest of Younique’s team and in partnership with their presenters, they have been able to impact the lives of millions of consumers across a number of countries with a mission to uplift and empower women. We look forward to working with them to continue supporting the mission and building Younique into a leading global e-commerce beauty company.”
“We are thrilled to have Coty as a partner and expect that together we will be able to take Younique to new heights,” Maxfield said. “Coty and Younique share a passion for beauty, an entrepreneurial spirit, as well as complementary missions. I am very excited about this partnership and everything it can bring to Younique’s employees, presenters and loyal consumers across the world.”
For Coty, the deal continues a buying spree that included the P&G portfolio, professional hair tools brand GHD for about $510 million, Brazil-based Hypermarcas for about $1 billion and Beamly, a digital marketing agency.