Fragrance and color cosmetics confronted steep declines in 2020, however magnificence demand general stays robust as shoppers flip to the self-care classes of skincare, haircare and private care. Getty Images.
Haircare model Pump Group Australia and its private-equity backer Anacacia Capital have acquired a considerable stake in New Zealand-based The Department of Brands Ltd.
The deal will practically double Pump Group’s dimension because the New Zealand agency can be merged into the Australian firm, Anacacia Capital Managing Director Jeremy Samuel mentioned. Financial particulars of the transaction weren’t disclosed.
Department of Brands’ revenues have surged by about 50% for the reason that Covid-19 pandemic started, founder Bex Gold mentioned in an interview this week.
“Sales have been constant, we’re undoubtedly not tapering,” Gold mentioned. The newest transaction will assist scaling up Pump Group’s direct-to-consumer gross sales channels to satisfy the rising demand, she added.
The funding comes as lockdowns have propelled shoppers to go for at-home hair coloring as a substitute of in salons. Retailers together with Ulta Beauty Inc. and Walmart Inc. had mentioned the section grew to become one of their most in-demand amongst housebound buyers final 12 months.
The Department of Brands, based in 2013, focuses on vegan and environmentally-friendly formulations. Its merchandise can be found in main grocery store chains in Australia, the US and the UK. The firm falls inside the mid-range of a typical funding for Anacacia, which targets companies between AUD $5 million ($3.8 million) and AUD $40 million in income, Gold mentioned.
By Harry Brumpton
