Acquisitions are an age-old strategy among global beauty conglomerates to fuel growth, but Procter & Gamble Co. isn’t planning to rely on this tactic, according to Chief Executive Officer Jon Moeller.
During the company’s investor day, as reported by Bloomberg, Moeller shared that higher financing costs and lofty expectations from sellers are some of the factors as to why P&G doesn’t plan to lean “more aggressively” into transactions, expecting the majority of growth will be organic.
The caveat appears to be beauty and personal care, where P&G doesn’t currently dominate the sector. Moeller said the company would consider “any kind of substantial” acquisition in the category.
In recent years P&G downsized its portfolio to about 65 brands in 10 categories from 170 in 16 categories in a strategy to focus on daily use categories in which consumers choose products based on effectiveness. In 2016, Coty a scooped up from 15 in 41. G brand billion deal.
Last spring P&G announced it had created a new Specialty Beauty Division following the acquisition of Tula Skincare, Farmacy Beauty, and Ouai haircare, indicating it was diving back into the prestige beauty pool. Moeller said any acquisitions would follow the same daily use of efficacy.
- In January 2022, Procter & Gamble made its third prestige beauty acquisition, snapping up Tula Skincare.
- Investing in its skincare portfolio, P&G acquired cult brand Farmacy Beauty in November 2021.
- Ouai, celebrity hairstylist Jen Atkin’s haircare brand, was acquired in December 2021,
- P&G bolsters its female grooming portfolio with the acquisition of DTC disruptor female shaving and body care brand Billie in January 2020.
- In February 2019, P&G snapped up one of the fastest-growing feminine care brands, This Is L.
- First Aid Beauty was acquired for an estimated $250 million in July 2018.
- In December 2018, P&G acquired Walker & Company Brands, a direct-to-consumer marketer of Bevel and Form Beauty personal-care products, to better serve consumers of color and to secure founder Tristan Walker’s cultural cachet.
- In February 2018, New Zealand skincare company Snowberry was acquired quickly on the heels of the Native Deodorant transaction.
