M&A update – Personal Care & Beauty

Record M&A in Personal Care & Beauty

In 2019 M&A activity in the global personal care and beauty sector increased by 20% on the previous year. Volumes hit a record high in Q4, with 52 deals completing compared with 24 in Q4 2018. The total number of transactions in 2019 was 163. The skincare category saw the highest level of activity with 47 acquisitions, the majority of which involved businesses with headquarters in North America.

Trade corporates are selectively acquiring differentiated brands that appeal to strategically important consumer demographics and are growing rapidly in modern channels or evolving product categories. Private equity investors have become particularly active in the sector as they recognise the high gross margins, strong repeat purchase and alternative sales channel opportunities for engaging brands.