French Transit International, the owner of Crystal deodorant, has acquired MyChelle Dermaceuticals.
MyChelle makes natural skin-care and makeup products that are sold in the natural grocery channel as well as Kohl’s. WWD first reported that MyChelle hired Threadstone Capital to handle the transaction in June. Terms of the deal were not disclosed.
MyChelle’s product line includes the Perfect C lineup, with Perfect C Cleansing Oil, $18, and Eye Cream, $29.50, as well as its Remarkable Retinal line, which includes a $40 night cream and other products. The company’s recently introduced tinted lip balms, its first foray into makeup, which launched with Whole Foods.
“They came to us and said, ‘When are you going to do color? You’ve got guaranteed space,’” said Kimberly Heathman, MyChelle’s chief marketing officer, in a previous interview. “And I’m thinking to myself, ‘We’ve got guaranteed space? I can do color.’
“It’s something we’ve been looking at, but it’s been hard,” Heathman continued. “In the lip category in particular, it’s hard to get around some of the synthetic colors, particularly as you get to the reds and purples and blue tones.”
MyChelle got around those ingredients for its Sheer Lip Hints in sheer, berry, wine and nude. The plan is to sell them at Whole Foods and other distribution points, and then continue working with Whole Foods to develop the rest of the color line, which will include foundations, Heathman said.
MyChelle was sold by Encore Consumer Capital, the same private equity firm that backed Tarte before its sale to Kosé in 2014. Encore declined to comment.
MyChelle’s buyer, French Transit, is also backed by private equity — by Juggernaut Capital Partners. French Transit also owns Luster White, a teeth-whitening program, as well as natural deodorant brand Crystal. Juggernaut did not respond to a request for comment.
The deal for MyChelle underscores interest in the natural beauty segment. In 2016, Mineral Fusion was sold to Australian company BWX, and Castanea Partners invested in skin-care business Tatcha. Broadly, the beauty M&A market remains very active. Unilever has recently acquired Sundial and Hourglass, the Estée Lauder Cos. Inc. invested in Deciem — The Abnormal Beauty Company, Tengram Capital Partners bought ReVive, and Eurazeo bought Nest Fragrances.