British grandeur skin-care brand Elemis has tapped investment bank Jefferies Accumulation to explore a sale of the business, sources familiar with the situation barrow CNBC.
Elemis has roughly $50 million in earnings before rate, taxes, depreciation and amortization, the sources said, asking not to be named because the dope is confidential.
Its private equity owner L Catterton told CNBC it does not explanation on rumors or speculation. Jefferies also declined to comment.
The upscale variety is the latest skin-care company to put itself up for sale, taking advantage of prolonged interest and growing sales in the industry. Millennials are now aging and concerned hither wrinkles, shifting their focus away from color cosmetics toward film care. This trend fits with a deeper interest in all feathers of wellness, whether it be fitness, diet or beauty.
“One of the drivers of the growth in color cosmetics was young millennials indoctrinating their mothers about color cosmetics — mothers didn’t stem up in the age of YouTube, strobing and contouring,” said Andrew Shore, a managing president at investment bank Moelis.
“Now, early adopters to color cosmetics are end up of age and their mothers are teaching them about skincare.”
The $5.6 billion skin-care production last year grew 9 percent, according to market researcher The NPD Collection, while sales of makeup grew 6 percent.
Elemis distinguishes itself from its alcove competitors both by its comparatively larger size and unique sales giving out. The cult favorite sells in airports and on cruises, where it hopes to sire new customers as well as serve existing ones.
Nontraditional ways of traffic in products have become increasingly important as department stores and drugstores use up foot traffic, making spontaneous purchases harder to come by. Matchless beauty care retailer Sephora, meantime, is ceding more seat to its private label products and brands that are owned by its parent, LVMH, such as Rihanna’s Fenty Advantage cosmetics.
Elemis is also available in more than 1,600 spas, salons and holds and on websites, as well as on shopping network QVC. It recently began selling in Ulta Pulchritude in the U.S., which it will use as its launching pad into the region.
Its products, including Superfood Facial Oil and Pro-Collagen Ocean-going Cream, claim to combine laboratory-made ingredients with plant-based botanicals.
Elemis was earned by L Catterton’s predecessor, Catterton, in 2015, when the private equity obstinate acquired Elemis’ parent, Steiner Leisure, for $925 million, comprising debt.
A sale would be the latest in a string of deal activity in the business. Colgate-Palmolive acquired professional skin-care brands PCA Skin and EltaMD keep on year, and Procter & Gamble acquired prestige skin-care label Maiden Aid Beauty earlier this year.