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The beauty and personal care market touched a decade-long high last year and is set to grow through 2019, according to Euromonitor International. Global sales of natural cosmetics in particular are expected to reach USD 55 billion by 2027, at…

The beauty and personal care market touched a decade-long high last year and is set to grow through 2019, according to Euromonitor International. Global sales of natural cosmetics in particular are expected to reach USD 55 billion by 2027, at a CAGR of 5.2 percent. Latin America and Asia Pacific have reported the strongest growth with APAC accounting for one-third of global market value in 2018.

In 2018, the percentage of beauty and personal care products sold online accounted for 10 percent of all sales and recorded growth in excess of 20 percent year-on-year. The industry is promising greater returns year after year, and strategic acquirers are actively seeking personal care deals to acquire insurgent on-trend brands, new age business models and entry into new markets.

Notable transactions this year:

L’Occitane acquired Elemis

L’Occitane International S.A., a manufacturer and retailer of natural cosmetics based in Luxembourg, entered into a definitive agreement to acquire Elemis in January 2019. The price of the acquisition was USD 900 million. The seller was Steiner Leisure Limited, a portfolio company of private equity firm L Catterton. Luxury British skincare brand Elemis sells cruelty-free products that focus on natural ingredients.

Unilever acquired skincare brand Tatcha

Unilever acquired prestige skincare brand Tatcha in June 2019, marking one of the largest acquisitions by the company since its acquisition of Dollar Shave Club in 2016. Founded in 2009, Tatcha focuses on natural ingredients rooted in Japanese culture. The brand has introduced Japanese skincare to several markets. Unilever paid close to USD 500 million for the acquisition, according to a Bloomberg report. The brand is distributed through Unilever’s prestige retailers predominantly in the United States. The transaction is expected to close in Q3 2019.

Glossier raised USD 100 million from investors led by Sequoia Capital

Modern beauty and skincare essentials brand Glossier Inc. became the latest beauty brand to be inducted into the unicorn club after it raised USD 100 million in Series D funding led by Sequoia Capital. Other investors included Tiger Global Management, Spark Capital, and existing investors Forerunner Ventures, Thrive Capital, IVP, and Index Ventures. The round valued the business at USD 1.2 billion, tripling the valuation it garnered with a USD 52 million Series C in 2018, according to TechCrunch. The company’s annual revenue more than doubled in 2018 and surpassed USD 100 million as a fully direct-to-consumer business.

SC Johnson agreed to acquire Sun Bum

SC Johnson, a household and personal products company based in the United States, signed an agreement to acquire Sun Bum in June 2019. Financial terms of the transaction were not announced. Sun Bum is a manufacturer of personal care products including sun protection, hair care and lip care products. SC Johnson is a manufacturer of household cleaning products with a portfolio of brands such as Kiwi, Windex and Ziploc in the United States.

Natura & Co. bought Avon

Natura, a multi-channel and multi-brand cosmetics group based in Brazil, agreed to acquire Avon Products, Inc. in an all-share transaction, creating the one of the largest pure-play beauty groups in the world. The corporate brand earlier included the Natura, Aesop and The Body Shop personal care brands, and now also includes Avon. Under the terms of the deal, Natura will hold 76 percent of the combined business, according to a press statement from the cosmetics firm.

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