In less than two months, Procter & Gamble (P&G) completed its third prestige beauty acquisition by taking over Tula Skincare.
WHO: Co-founded in 2014 by Dr. Roshini Raj, gastroenterologist and medical graduate internist from New York University School of Medicine; Ken Landis, co-founder of Bobbi Brown Cosmetics; and Dan Reich, an entrepreneurial technician, Tula’s revolutionary approach to skin care harnesses the power of probiotics to improve the overall health and appearance of the skin.
Based in Cincinnati, Ohio, Procter & Gamble is a Fortune 500 company and the world leader in consumer packaged goods. P&G serves nearly 5 billion people worldwide with its multi-category portfolio, which covers beauty, health care, grooming, fabrics and home care, as well as baby, women’s and family care. P&G brands are widely recognized, including Crest, Febreze, Gillette, Head & Shoulders, Olay, Pantene, SK-II, and Tide.
WHY: P&G appears to be taking a step into prestige beauty, adding Ouai, Farmacy Beauty and Tula Skincare to its existing portfolio of SK-II and First Aid Beauty and taking on L’Oréal, Unilever and Estée Lauder.
IN THEIR OWN WORDS: “When we look at our beauty strategy, we want to gain beauty in the categories in which we choose to play: skin, hair and personal care, categories where the clinical performance of the products makes the difference”, Markus Strobel, President of Global Skin and personal care, WWD said. “We want to win in the industry, in different channels and segments. Wherever we think there is a gap in our portfolio, we want to close it. The prestige beauty channel is experiencing double-digit growth, so it is a channel where we want to have a stronger presence with a smaller portfolio, ”he continued,“ a portfolio that covers the main areas advantages that we believe will grow in the future. “
“We are really at an inflection point as a brand,” Tula CEO Savannah Sachs told WWD, “We have an incredibly talented team that I am honored to work with. “We’re just getting started and scratching the surface of long term opportunities. We have remained very focused to this day. While we plan to continue to grow, there is so much white space.”
“Tula represents some of the major trends we see in skin care today: effective products with a history of ingredients that tap into health and wellness and a culture of inclusion and positivity. skin, ”said Jon Owsley, Managing Partner of the L Catterton Growth Fund. “From the start of the discussions between the company and P&G, it was clear that P&G understood the essence of the brand and shared the vision and mission. “
- Procter & Gamble acquired Tula Skincare. Terms of the deal were not disclosed.
- WWD has announced that Tula is on track to reach around $ 150 million in net sales for 2021.
- It has been reported that Tula is the fastest growing premium brand at Ulta Beauty with around half of its sales going direct to consumers.
- Tula CEO Savannah Sachs will remain on board to lead the company under its new owner.
- According to Crunchbase, the brand raised a total of $ 12.2 million.
- In 2017, the company received a significant growth capital investment from L Catterton. This transaction represents another successful exit for L Catterton, whose current beauty product portfolio includes investments in Il Makiage, Function of Beauty and Kopari.
- The transaction is the third and largest beauty transaction since November 2021. P&G acquired Farmacy Beauty, which was about half the size of Tula, and Ouai, which was one-third the size.
- Financo Raymond James was Tula’s exclusive financial advisor.