Every month, Simon Pitman (Editor, Journalist) takes a look at what’s shaken up the industry. From acquisitions to launches and everything in-between, don’t miss the latest cosmetics news only here at in-cosmetics Connect.
Shiseido mulls sale of part of its personal care business
Shiseido is said to be in advanced talks to sell its mass-market shampoo and skincare business to CVC for 200 billion Yen ($1.9bn).
The move is part of the global cosmetic and personal care player’s shift towards the premium market, where it already has a significant footing, according to insider information reported on in a number of financial news sources, including Bloomberg.
The board of Shiseido is expected to vote on the divestment within the next few weeks, with the company’s Tsubaki haircare brand, which is predominantly sold in Japan and China, expected to be among the brands included in the deal.
Speculation about the sale of a significant part of one of Japan’s largest fast-moving consumer goods companies caused shares in the company to spike by 6.5% on Friday January 21st, after the company confirmed that it was in discussions with CVC Capital.
Shiseido executives have said that no formal decision has been made at this stage, while CVC has refused to make any formal announcement about the discussions.
The news comes as part of a shift by many Japanese companies to refine businesses and focus on core capabilities following an economic slowdown that has been caused by a drop in international travel caused by the pandemic.
Businesses are increasingly focusing on the domestic market in an effort to maintain and improve performance.
Ipsy enters personal care arena with new brand
In the US, BFA Industries, the beauty innovation arm of Ipsy, BoxyCharm and brand incubator Madeby Collective, is launching a line of personal care products called Refreshments.
The brand is clean, cruelty-free and 100% vegan and includes a hand and body cream, body wash, face wipes and a newly launched razor kit and body cream.
The company claims that the new brand is breaking new ground by targeting a fresh take on personal care thanks to a brand design that is both vibrant and more individualised.
“Beauty and makeup have long been associated with self-expression and experimentation, while personal care has lagged far behind,” said Sabeen Mian, SVP of Refreshments.
“With Refreshments, we wanted to inject fun and personality into the bathroom with products that anyone and everyone can feel good about using. Every product in the line is formulated without parabens, phthalates, sulfates, gluten and nut allergens, and is cruelty-free and 100% vegan.”
The brand leverages Ipsy’s machine learning technology and member data to pinpoint consumer preferences and signal opportunities to fulfil specific needs.
The company piloted a members-only subscription option for the new brand to a small number of Ipsy’s 3M+ members in November, and according to the company it received over 150,00 sign-ups within the first 30 days.
The newly launched line is now available a la carte on Refreshments.com or through subscription to Ipsy members.
Ashland to buy personal care maker
Ashland Global Holdings is to acquire the personal care business of Schülke & Mayr, which is a part of the global investment organisation EQT.
The signed agreement means that Ashland will pay €262.5 million in cash for the business, with the aim of closing the transaction by the end of June 2021, subject to customary closing conditions.
The transaction forms part of Ashland’s ambition to create a strategic position for itself as a premier special additives supplier, while also strengthening the company’s consumer business portfolio.
“This is an excellent example of the type of bolt-on acquisition opportunities that will help advance our strategy and support the profitable growth of our core businesses,” said Guillermo Novo, chairman and chief executive officer, Ashland.
“I am excited about having the Schülke & Mayr personal care employees join Ashland to help us broaden our breadth of speciality additives solutions and expand our biotechnology and microbiology technical capabilities.”
Simultaneously, the move will advance Ashland’s environmental, social and governance agenda for personal care and household applications, thanks to the new business’s enhanced profile in these areas.
Bright International partners with Bocchi Labs on personal care
In the US Investment company Bright International has announced the acquisition of Bocchi Laboratories.
Bocchi is based in Santa Clarita, California and New Albany, Ohio and is focused on full-service beauty and personal care liquid-based formulator and manufacturer for brands focused on hair care, skincare and personal fragrance.
Bright International, which is a part of Aterian Investment Partners is expanding into personal care by building on its capabilities in the household segment, where it is already the largest manufacturer of bleach and innovation related products in North America.
According to Bright, the combined capabilities of the two businesses will form one of the most diverse full-service beauty and personal care platforms in the North America market.
“The partnership between Bocchi and Bright is the ideal outcome for our employees and customers as the combination provides significant resources and capabilities as we continue our growth strategy and our commitment to our customer base through execution and innovation,” said Joe Pender, CEO of Bocchi.
Kirkland & Ellis LLP, Paul Hastings LLP and The Gulfstar Group, advised Aterian on the investment. Lincoln International and Buchalter advised Bocchi Laboratories.
Harry’s expands portfolio with deodorant launch
Global shaving and men’s grooming brand Harry’s has expanded into men’s deodorants and antiperspirants.
Harry’s has made its name as a subscription-based provider for men’s shaving products, but is also available at major retailers, including Target, Walmart and Kroger.
According to executives at the company, the new launch of the deodorant and antiperspirant line was prompted by strong demand from its customer base, who lobbied the company to launch the new line.
Harry’s was lined up to merge with personal care giant Edgewell last year, but the US FTC denied the go-ahead for the deal, which was said to be valued at nearly $1.4 billion.
With the deal abruptly ended, Harry’s executives decided to expand the portfolio instead, with one of the first and boldest moves being to hop into the deodorants category.
Harry’s has created a significant footprint in the US, Canada and the UK, and is now aiming to increase its footprint in the men’s grooming category in those markets with the launch of the deodorants.
The line includes three products with three levels of sweat control – Odor Control providing 24 hours of protection, Odor and Sweat Control providing all-day protection and Odor and Enhanced Sweat protection providing extra protection from perspiration.
PPC acquires Vertellus
Pritzker Private Capital has confirmed that it has acquired the Vertellus group of companies, a speciality chemicals company specialised in personal care, beauty, fragrance, healthcare, food and agriculture.
Headquartered in Indianapolis, the company manufactures more than 700 products that are used in the formulation of a wide number of health and beauty products, with customers across the globe and ten manufacturing sites in the US, UK, India and China.
“Over our 150+ year history, Vertellus has built a culture committed to delivering industry-leading, high-quality products and services to our customers across the end markets we serve,” said Mr. Van Hulle.
“Our partnership with Pritzker Private Capital will help us build upon Vertellus’ leading standard of quality, service and safety as we advance our growth strategy. PPC is the ideal partner for our exciting next chapter.”
The company’s capabilities include a microencapsulation process that helps extends the life of scents, called ZeMac E400 technology, as well as an antimicrobial solution called CPC.
Want to know more about what’s been happening in the industry? Check out what’s been happening in the ingredients market recently.