Independent Makeup brand cuts $1Billion stake in a $532 billion business

Independent Makeup brand cuts $1Billion stake in a $532 billion business
  • Celebrity brand could be valued at more than $1 billion
  • The global beauty industry is a $532 billion business and it is projected to exceed $800 billion by 2025.

Sequoia Capital-backed makeup company Charlotte Tilbury is close to a sales broker with Puig and BDT Capital Partners for over $1bn.

A deal to buy U.K.-based Tilbury could be announced as early as this week, said the people, who wanted to remain anonymous.

Puig, which also sells Jean Paul Gaultier and Nina Ricci fragrances, is in talks to team up with Byron Trott’s investment firm BDT Capital Partners on the purchase, the people said.

Charlotte Tilbury is a London-born makeup artist who founded her namesake brand in 2013. She plans to keep a minority stake in the business, which is famous for products such as Magic Cream moisturizer and Pillow Talk lipstick, the people said. If a deal is sealed, Puig will have beaten competitors which  includes Unilever, according to the people.

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Charlotte got her break working with supermodels such as Kate Moss and actresses including Penelope Cruz.

This deal is epic in the sense that an Independent brand like tilbury has trumped competitors and still remains significant amid the coronavirus pandemic.

L’Oreal SA, Estée Lauder Cos. and Japanese beauty company Shiseido Co. expressed interest in an acquisition of Tilbury, according to Bloomberg news.

No final decisions have been made, and the talks could still be delayed or fall apart, they said. Representatives for Puig, Charlotte Tilbury and BDT kept mute on the matter. A representative for Unilever declined to comment.

Any deal would represent a rare example of a major British business sold in an auction process since the coronavirus outbreak.

After KKR & Co.’s 4.2 billion-pound ($5.2 billion) acquisition of U.K. waste management provider Viridor Ltd. in March, several sale processes have been shelved. 

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Today the global beauty industry is a $532 billion business. The U.S. currently is the world’s largest beauty market, with about 20% share, followed by China (13%) and Japan (8%). While projections for growth vary, most agree it will continue to advance at a 5%-to-7% compound-annual-growth-rate to reach or exceed $800 billion by 2025.