BWX Ltd. has acquired natural beauty brand Mineral Fusion.
Mineral Fusion is a mass-market beauty company that makes makeup, skin care, body care, hair care and nail polish products that are paraben-, gluten-, artificial color- and phthalate-free. Products are priced between $7.99 and $32.99. The company has about $24 million in net sales, and expects between $3 million and $4 million in earnings before interest, taxes, depreciation or amortization for 2014. WWD reported that the business was being shopped by Houlihan Lokey in March.
Mineral Fusion was sold by Greenwich, Conn.-based private equity firm North Castle Partners, which is also invested in Red Door Spa, Palladio and Barry’s Bootcamp. North Castle invested in the business back in 2010, and expanded it into more categories.
The business also expanded its distribution beyond just the natural grocery channel. It’s available in about 3,000 doors, including Whole Foods, as well as CVS, where it debuted in 2017 as part of the chain’s expansion of its better-for-you beauty offering.
“Mineral Fusion grew from a single customer cosmetics brand into the leading natural brand of mineral-based personal-care products across multiple categories, including color cosmetics, body, skin care, nail care and hair care,” said North Castle managing director Jon Canarick. North Castle tapped Gil Pritchard, formerly chief executive officer of a different North Castle-backed business, Avalon Organics, to run the business.
BWX, headquartered near Melbourne, Australia, is a vertically integrated body, hair- and skin-care company that owns and distributes several brands, including Sukin, Uspa, Edward Beale and Renew Skin Care. The company also manufactures products for other businesses.
Mineral Fusion was just one of a handful of companies in the natural beauty space that are on the market. Industry sources have indicated that Andalou Naturals, Derma E, Kiss My Face and MyChelle Dermaceuticals are also in the market for investors.
The beauty category has been an M&A hot spot, with industry growth and increased investment competition driving multiples into the five- and six-times sales range. Other companies seeking investment are said to include Aquis, Birchbox, Glow Concept and Nest Fragrances.