Key Takeaways

• Mergers and acquisitions dominated the beauty and personal care sector in 2025, reflecting a focus on scale and growth.
• Strategic buyers, including L’Oréal and Unilever, actively sought to enhance portfolios via acquisitions of high-growth brands.
• Notable deals indicate a shift towards founder-led brands and a growing interest in Asian and African beauty markets.

Mergers and Acquisitions Reshape the Beauty Landscape

In 2025, the beauty and personal care industry experienced significant transformation through a wave of mergers and acquisitions. As consumer confidence fluctuated and organic growth became increasingly challenging, businesses focused on consolidating their strengths and expanding through strategic actions. High-profile deals underscored the industry’s demand for scale, speed, and relevance in product portfolios.

A standout transaction was Kimberly-Clark’s proposed US$48.7 billion acquisition of Kenvue, marking a significant investment in health and hygiene as primary growth drivers. Similarly, Sycamore Partners successfully took Walgreens Boots Alliance private, echoing confidence in restructuring traditional retail formats away from public market pressures.

The beauty sector remained attractive for private equity investments, illustrated by CVC Capital’s acquisition of Korea’s Serin Company for approximately US$600 million, targeting K-beauty brands with international potential. Blackstone followed suit with the acquisition of Juno Hair, a prominent South Korean salon chain for US$590 million, highlighting the confidence in scalable beauty services. DBG Group valued the Australian brand MCoBeauty at US$1 billion in a full acquisition, and Bansk Group acquired a majority stake in BYOMA, showcasing strong community engagement and market positioning.

Major players actively reshaped their portfolios to focus on high-growth segments. L’Oréal emerged as a prominent acquirer, securing brands such as Color Wow and a majority stake in Medik8 while divesting Carol’s Daughter to its founder, Lisa Price. Additionally, L’Oréal’s SalonCentric expanded its operations by acquiring K18 distribution rights in Quebec.

Unilever also embraced premium, digitally-driven personal care, acquiring brands like natural deodorant maker Wild and Dr. Squatch, signaling a pivot towards sustainable and high-margin offerings with global appeal.

Founder-led brands garnered significant interest, with e.l.f. Beauty’s acquisition of Rhode for US$1 billion transforming Hailey Bieber’s skincare brand into a competitive entity. Other noteworthy transactions included Color Wow’s potential sale discussions and OSEA Malibu gaining investment from General Atlantic for global expansion.

Geographical trends in deal-making illustrated a shift in the beauty industry’s center of gravity, particularly in Asia with transactions such as Goodai Global’s acquisition of Skinfood and Taekwang’s target on Aekyung Industrial. Africa also attracted attention, exemplified by Axian Telecom’s interest in acquiring Jumia, a platform prevalent among beauty brands.

Retail consolidation accelerated, evidenced by Ulta Beauty’s entry into the UK market through its acquisition of Space NK. Violet Grey expanded its luxury sector with The Detox Market acquisition, and CVS Pharmacy moved to enhance its personal care retail presence by acquiring 64 Rite Aid stores, pending court approval.

However, not all discussions culminated in successful deals; Frasers Group abandoned its takeover bid for Revolution Beauty, prompting the UK cosmetics brand to reassess its strategic direction. Other notable divestments included Natura’s sale of Avon operations in Central America and Edgewell’s divestiture of its feminine care portfolio to Essity.

Overall, the M&A activity in 2025 highlighted an industry growing more decisive in its acquisitions. Buyers increasingly sought unique brands with loyal followings and global scalability, while sellers aimed to maximize value in a demanding financial environment. In a year defined by challenging organic growth, mergers and acquisitions became a pivotal strategy for reinvention and reflected the areas of confidence within the industry.

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