Exclusive Distributor of Premium Personal Care Brands
This is an opportunity to acquire a rapidly growing distributor of premium beauty brands based in Canada. The business has exclusive distribution agreements with global high-end, luxury skin care and cosmetic product manufacturers. In addition, it has built strong relationships with a network of masstige cosmetics retailers, boutique spas and independent retailers. The company has invested extensively in marketing and in creating brand awareness for its products in the Canadian market. Consequently, the business demonstrated consistent growth with an annualized revenue growth rate of 11.3% over the last five years.
The company markets their brands through multiple channels including social media, public relations, education and training, and product demonstrations. It also maintains strong relationships with its professional and masstige retail customers, who market and recommend the brands to their customer base. Due to its lean and asset light operating model the company has demonstrated strong profitability with an average five-year EBITDA margin of 32%. The company’s revenue is well diversified, and the product mix is carefully selected to provide a complementary offering for their masstige retail and professional services customer base.
The business has also taken advantage of the worldwide shift to E-commerce through proprietary websites and the utilization of brand name partnerships. Moreover, the company signed an exclusive agreement to add one additional high-end, premium brand to their portfolio which is expected to further boost topline going forward. Currently, the owner is involved in general supervision, business development and customer relationship management.
The global luxury skin care industry landscape is opportunistic, supported by strong tailwinds. Personal care dominates the global beauty and cosmetics market with skincare products making up 42%, the largest share, of the entire market. Growth is fueled by an aging global population, rising per capita disposable income and evolving customer profiles. A preference for organic and sustainable beauty products has further fueled industry growth and the global cosmetics & beauty products industry is expected to grow at a 6% CAGR. Given the company’s scalable operating model and strong industry tailwinds, the business is well positioned for growth.
This is an ideal opportunity for an existing distributor of beauty products looking to expand their product portfolio or an adjacent distributor who wants to enter the rapidly growing beauty and cosmetics industry.