In 2025, the beauty mega-deal bounced back.
Surprise splurges, like E.l.f. Beauty’s $1 billion buyout of Rhode and L’Oréal acquiring Kering’s beauty business for $4.7 billion rocked the industry and ended the dry spell of the previous year.
Behind these blockbuster deals is the industry’s new and redefined priorities. Instead of simply picking viral brands, acquirers slowed their roll and sought out more established names, like L’Oréal’s acquisition of 12-year-old Color Wow and and 16-year-old Medik8. While buzz is still needed — E.l.f. Beauty paid $1 billion for Rhode in part because of its white-hot marketing and products — many companies are looking for proven and repeatable businesses.
M&A also emerged as a lever for brands who simply wanted to buy growth; Ulta Beauty snapped up Space NK to further its global ambitions. Fragrance was a hot category — after being on the sidelines last year, private equity player TSG re-entered the fray by buying Phlur, while Church & Dwight acquired teen-favourite brand Touchland.
2025 also was also the year of the founder buyback. Huda and Mona Kattan both reclaimed control of their brands, Huda Beauty and Kayali, signalling their intent to operate as free agents.
With many indie brands still hoping to find a buyer in 2026, the stage is set for more private equity buyouts, as strategics continue to shop selectively.
Top Stories
1. L’Oréal to Acquire British Skincare Brand Medik8. The world’s biggest beauty company has acquired a majority stake in the English premium skin care line known for its science-backed serums.
2. E.l.f. Beauty Acquires Hailey Bieber’s Rhode Skin for $1 Billion. In an interview with The Business of Beauty, E.l.f. chairman and chief executive Tarang Amin said the two brands recognised the “power” of joining forces.
3. Full Coverage: Mona Kattan Is Enjoying Her Freedom. This week, I give you my thoughts on Neutrogena’s new owner, Skims’ beauty hire and a boycott brewing on TikTok, alongside a candid Q&A with the Kayali founder on buying back her brand.
4. Huda Kattan Buys Back Huda Beauty. Kattan has regained full ownership of the prestige cosmetics brand after buying back a minority stake held by TSG Consumer Partners.
5. Beauty’s Hottest New Trend: The Founder Buyback. Original influencer Huda Kattan has regained majority ownership of her namesake beauty brand and sent a message to the greater industry: When it’s time to course-correct, you need your best driver.
6. Church & Dwight to Acquire Hand Sanitiser Brand Touchland for $700 Million.The owner of personal care brands like Viviscal and Nair announced on Monday that it has signed a definitive agreement to acquire the viral hand sanitiser brand, with an earn-out that could take the total purchase price as high as $880 million.
7. Beauty’s Top M&A Targets for 2025. After a slow year for acquisitions, brands and investors alike are hoping that 2025 will yield bigger exits. But with most strategic buyers like L’Oréal operating with an even narrower lens, only a select few firms will make it across the finish line.
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