Shiseido seals $845m deal to buy skincare firm Drunk Elephant

Photo: Drunk Elephant's Facebook page

Shiseido Co. agreed to buy skincare brand Drunk Elephant for $845 million as the Japanese beauty company seeks to appeal to younger consumers in the U.S.

The deal for Drunk Elephant Holdings LLC won’t have a significant impact on full-year earnings, Shiseido said in a statement Tuesday. It will be financed with a combination of cash and credit, and is expected to close by the end of the year.

Shiseido is acquiring a brand beloved by hip millennial and Generation Z consumers for its nontoxic ingredients and Instagram-friendly packaging, as the Japanese company attempts to bolster its presence among younger shoppers.

The world’s largest cosmetics companies have been rapidly acquiring upstart brands in recent years as they search for the next big hit. Last year, Shiseido redesigned its eponymous makeup line to appeal to younger generations.

The Drunk Elephant deal will add to Shiseido’s “prestige” skincare portfolio, which has been a key source of growth for the company in recent years as consumers show a willingness to spend on higher-priced beauty products.

Drunk Elephant was founded in 2012 by Tiffany Masterson and is known for its products with nontoxic ingredients that make use of acids. The company is profitable and on track to have more than $100 million in sales in 2019, according to Shiseido.

Bloomberg

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Following vacancies can be applied for (only in Singapore).   

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Singapore Reporter/s

In Singapore, we are looking to double our reporting team by this year-end to comprehensively cover the fast-moving world of funded startups and VC, PE & M&A deals. We want reporters who can tell our readers what is really happening in these sectors and why it matters to markets, companies and consumers. The ability to write precisely and urgently is crucial for these roles. Ideal candidates must have to ability to work in a collaborative, dynamic, and fast-changing environment. We want our new hires to be digitally savvy and ready to experiment with new forms of storytelling. Most importantly, we are looking for hard-hitting reporters who work well in a team. Collaboration and collegiality are a must.

Following vacancies can be applied for (only in Singapore).

Following vacancies can be applied for (only in Singapore).   

  • A reporter to track companies/startups that have raised private capital, and have the potential to become unicorns. SEA currently has over 40 companies with a valuation of over $100 million and under $1 billion.
  • A reporter who can get behind the scenes and reveal how funding rounds are put together, or why they’ve failed to materialise. She/he in this role will largely focus on long-format stories. 
  • A journalist to track special situations funds, distressed debt and private credit (from the PE angle) across Asia.