After a glut of makeup brands flooded the market, progress — and those respective deal processes — are off to a slow start. Skin care, meanwhile, is showing signs of life with Byoma venturing into market, and rumors swirling around other brands., WWD understands that profitability numbers, which weren’t as high as potential investors had hoped, were a turnoff for some strategics and that the deal process has essentially paused.
And while sources close to Rare insisted that a process is yet to formally begin, the understanding among industry sources is that with net sales of $350 million last year, the brand is too big for many traditional players to acquire, with some speculating that the price could reach $2 billion.But multiple sources told WWD that a traditional sales process is looking less likely.
“Glow Recipe has been experiencing tremendous growth and reaching new fiscal milestones, operating as an indie, founder-led skin care company,” said Sarah Lee and Christine Chang, the brand’s cofounders and co-chief executives. “We currently do not have plans to kick off the M&A process.”