Beauty IOD Blog

Beauty IOD in WWD Beauty Biz

This week's WWD Beauty Biz feature on beauty deals in California highlighted the Beauty IOD, and a quote from Sarah Chung of Periscope Solutions, publisher of the Beauty IOD Report Series.

The pursuit of California brands, such as Juice Beauty, suggests that the tide could be turning, though. Interest in beauty and personal care transactions hasn’t died. The recession, while steamrolling longheld business assumptions, hasn’t shaken an underlying faith in the potential of well-positioned brands. In fact, that faith may be stronger than ever.

“Beauty is one of those areas where women are treating themselves, even in this economy,” says Sarah Chung, author of the Beauty Information on Demand report, about deals in the sector. “As long as consumer appetites are not satiated, entrepreneurs will continue to respond, and people will want to participate in the market. There is nothing inherently wrong in the beauty industry.”

Castanea Partners Acquires Urban Decay from The Falic Group

After acquiring Urban Decay from LVMH in 2002, The Falic Group has sold the cosmetics company to Castanea Partners. Terms were not disclosed. The Falic Group claims to have built annual sales by four times over the period of ownership. Urban Decay general manager Tim Warner told WWD in 2007 that the brand was on pace to hit $100 million in global revenues that year.

Robert Smith, co-managing partner of Newton, Mass.-based Castanea and former co-chief executive officer of the Neiman Marcus Group Inc. “When Urban Decay came along, we were attracted to it for a few reasons: one, it is a very distinctive brand and a leader in its category serving an edgier, younger customer and, two, it is really concentrated on building retail partnerships with its specialty retailers.”

• Orange County Business Journal, Edgy Cosmetics Maker Urban Decay Sold
• WWD, Castanea Buys Majority of Urban Decay Cosmetics

Trend Tracking: Johnson & Johnson enters medical beauty with Mentor acquisition

The Beauty IOD Centerhas been tracking physician's channel as one of the emerging trends of the beauty industry.  In recent related news, Johnson & Johnson acquired medical aesthetic products supplier Mentor Corporation in a cash tender offer valued at $1.07bn.

The Forbes report states, "JNJ understands that the $4.6 billion cosmetic medicine market is expected to grow to $6.7 billion by 2012 and the best time to enter this market is when companies are trading at very attractive valuations."

For more in-depth information on the significance of the physcian channel to the beauty industry, log into the Beauty IOD Center.