Procter & Gamble is at it again — acquisitions, that is.
The consumer products giant made its second acquisition in the past three months with the purchase of Snowberry, a New Zealand-based prestige skin-care business. The company was founded by Soraya Hendesi, and the products are free of petrochemicals, sulphates, artificial coloring, silicones, glycols and parabens. Snowberry makes products like Gentle Cleanse & Tone, $45, and Nourishing Lite Day Cream, $70.
P&G declined to make executives available for interviews. Terms of the deal were not disclosed.
Snowberry falls in the prestige beauty category, which P&G mostly exited when it sold its specialty beauty portfolio to Coty Inc. P&G does still own premium skin-care brand SK-II, which has been lauded on the company’s recent earnings calls as a source of growth.
“We estimate P&G’s super-premium skin care brand SK-II accounted for about half of the company’s sales growth in [the second quarter of fiscal 2018], compared with about a quarter of organic growth in [fiscal 2016] and [fiscal 2017],” wrote Stifel analyst Mark Astrachan in a note in January, when P&G reported earnings for its second fiscal quarter. “Brand growth accelerated sequentially in [the second fiscal quarter of 2018] and was highlighted as a growth driver of the beauty segment for both developed and developing markets, including a meaningful contributor to a 7 percent mix benefit, distantly the strongest level of growth in at least 15 years.”
The purchase follows P&G’s deal for Native, a natural deodorant company. P&G executives have demonstrated interest in the natural category on the company’s recent earnings calls.
P&G’s acquisition activity comes as it works to ramp up growth. The company recently ended a months-long proxy fight with activist investor Nelson Peltz, who was granted a seat on the P&G board. During that period, Peltz advocated for small acquisitions that could drive growth.
The group is just one of the players making acquisitions in the beauty and personal care space. Edgewell Personal Care, traditionally a grooming business, recently acquired men’s brand Jack Black. Colgate — better known for toothpaste than toner — started building its professional skin-care business with the acquisitions of PCA Skin and EltaMD. Other recent acquisitions include Kao’s purchase of Oribe, Eurazeo Brands’ deal for Nest Fragrances and MidOcean Partners investment in BH Cosmetics.