Potential $1.3 billion bid for The Body Shop, Puig buys majority stake in Greek natural brand Apivita, Aussies love pharmacies reveals new report, and Australian men spend $617 million a year on clothes.
Potential $1.3 billion bid For The Body Shop
Interested buyers have been circling The Body Shop ever since L'Oréal flagged a sell-off of the beauty retailer last month. Even though Apax Partners, owner of the Karl Lagerfeld fashion brand, and Advent International, who specialise in key investments in retail, tech and healthcare, are said to be preparing bids. The one with the most legs comes from Emmanuel Osti, the former head of L'Occitane, who has teamed with CVC Capital Partners.
CVC Capital Partners is the former owner of PBL Media and sold ACP Magazines to Bauer Media in 2012. The giant private equity firm bought Douglas, Europe's largest perfume and cosmetics chain, in 2015 from Advent International for $AU3.9 billion. With $US52 billion in assets, CVC also sold its investment in Formula One sports racing to Liberty Media last year as part of an $AU8 billion deal.
L'Oréal bought The Body Shop in 2006 for just over $AU1 billion and is working with Lazard, the world's leading financial advisory and asset management firm, to secure a $AU1.37 billion buyout price. The Body Shop currently operates more than 3000 stores worldwide and its revenues in the three months to December 31st totalled $AU454 million.
Puig buys majority stake in Greek natural brand Apivita
Whispers have been swirling for months that Greek natural brand Apivita was unofficially on the block. Some analysts had predicted that L'Oréal might dip into its acquisition war chest. But Puig, or rather its parent company Corporacion Exea Impresarial, has acquired a 66 per cent majority stake.
Founded in 1979 by pharmacists Nikos and Niki Koutsianas, who retain a 33 per cent share in the business, Apivita has become a major player in the global natural cosmetics market. The name means "life of the bee" and the brands extensive 300 product portfolio is based on bee products such as royal jelly and propolis and Greek herbs. Spain and the UK are key markets and the brand has build up a significant presence in Asia, the US and Australia.
The injection of funds by Puig, the owner of L'Artisan Parfumeur and Penhaligon's and operator of the Jean Paul Gaultier, Prada, Paco Rabanne and Valentino fragrance licenses, will allow Apivita to gear up for further global expansion. The terms and price tag were not disclosed, but analysts estimate the deal was probably worth $AU55.8 million.
Aussies love pharmacies reveals new report
That's the verdict of the latest Health Futures Report from McCrindle Research for the Pharmacy Guild of Australia. As far as service is concerned, respondents gave the thumbs up to friendliness (63%), professionalism and reliability ( both 55%).
A major takeaway for beauty and personal care brands was that 31 per cent of those surveyed had bought beauty products in pharmacies over the past 12 months. Health is so entwined with looking good today that another key factor of the report is that 39 per cent of respondents consider pharmacists to be advocates of healthy living. Over 60 per cent also believe that pharmacies provide a clear benefit to the community as integral health services.
Purchasing prescription-only medicines remains the number one service provided by pharmacies (75%). But 21 per cent also purchase complementary medicines and supplements such as vitamins and minerals.
Style icons: Australian men spend $617 million a year on clothes
You wouldn't know it from the majority of TV ads but 40 per cent of Australian men agree that "they try to look stylish", reports Roy Morgan Research. A percentage that jumps to over 60 per cent for guys aged 25 and under.
In 2016, 38.7 per cent of Aussie males – 3.8 million – bought clothing in an average four week period. Women remain the biggest spenders, of course, with 66 per cent buying new clobber in an average four week period and 62 per cent claiming they like to look stylish. But an annual men's clothing spend of $617 million a year is still big business, notes the researcher.
Men across every demographic spend more than they did four years ago. Guys aged 35 to 49 top the rankings with an average monthly spend of $181, followed by Millennial males aged 25 to 34 ($171) and 50 to 64 years olds ($160). Gen Zers – 25 and under – spend $156; only $16 more than men aged 65-plus ($140).
It's still not that common to meet guys who claim to love shopping – only 26.2 per cent. But according to Roy Morgan Research Industry Communications Director Norman Morris: "With the influx of international fashion retailers into the local market over the last few years, men's clothing stores are under just as much pressure as women's boutiques to remain competitive. Single men are more likely than their coupled-up partners to agree that they try to look stylish, that it's important to look fashionable and that they are born to shop".
Snippets from the wires
- Inditex, the parent company of Zara, has reported double digit sales growth of 12 per cent to 23.21 billion euros ($AU32.56 billion) for 2016. Net profits jumped to 3.16 billion ($AU4.41 billion). Over the past 12 months the company opened 279 new stores and plans to open 450 to 500 more by the end of the year.
- Revlon continues its strategy to re-position itself as a world class beauty leader. Serge Jureidini has been appointed President, Elizabeth Arden and Fragrances. He joins Revlon from Arcade Beauty, the sampling and packaging giant. But he is a 20 year veteran of L'Oréal, including key roles such as President of Lancôme and President of the Designer Fragrances Division in the US.
- The US cosmetic and plastic surgery market grew 11 per cent in 2016, reports the American Society for Aesthetic Plastic Surgery. Revenues hit a record $US15 billion, fuelled strongly by Baby Boomers and Millennials.
- Natio has been a leading beauty exporter since the early Noughties. The Aussie natural powerhouse has just launched a Limited Edition Contour Palette in India.
- Australia is the biggest market for bodycare and shower products in the Asia/Pacific region. The Aussie market is worth about $500 million a year. Sales of local and natural brands are fuelling much of the continuing growth.
- Inter Parfums net sales for 2016 exceeded expectations – rising 11.2 per cent to US$521.1 million. Bullet performers included the first Coach fragrance from the perfume maker and new launches from fashion brands Abercrombie & Fitch and Hollister.
