M&A heats up for indie fragrance brands



Indie fragrance brands from Europe are in the spotlight these days as mergers and acquisition activity heats up in the beauty arena.

"Fragrances are a hot sector for M&A right now, and large beauty firms are rediscovering it after being interested more in skin, color and nail in recent years," said Karen Walker, senior managing director of Michel Dyens & Co., the Paris- and New York-based investment banking firm specializing in luxury and beauty. [...]

"The big beauty companies want to move from celebrity or fashion brands, except for the most prestigious designer brands, and prefer to own their own brands with heritage or new modern concepts," said Walker.

"Acquirers feel that some heritage brands can be revived, as it is difficult to build a history," she continued. "Acquirers are also interested in new modern concepts led by entrepreneurs, which pave the way for long-term sales growth and which can be accelerated by synergies the large beauty groups bring, especially in distribution and retail." [...]

"M&A activity in the beauty space will remain high as innovation and consolidation are permanent features," said Michel Dyens, chairman and chief executive officer of Michel Dyens & Co. "Smaller, high-growth-potential emerging brands built on social media and new concepts will drive strategic acquisitions, as well. Private equity acquisitions will continue to be strong and will help prepare some brands for the next wave of consolidation." [...]

Michel Dyens