Cosmetics in Brazil M&A Movements Analysis¶
M&A Movements¶
The Brazilian cosmetics industry has seen notable merger and acquisition (M&A) activities in 2024 and early 2025, reflecting ongoing consolidation and strategic shifts among key players. While the overall global M&A volume in the consumer goods sector saw a decline in 2024, the value increased due to significant transactions, and selective M&A, including tuck-in acquisitions and the carving out of non-core assets, is anticipated for 2025. These movements are aimed at expanding product portfolios, enhancing market presence, and leveraging new technologies and distribution networks.
One significant M&A movement in 2024 was Advent International's acquisition of a majority stake in Skala Cosméticos in February. Skala, a Brazilian company known for its affordable and vegan haircare products, is a leader in hair treatment creams in Brazil and the fourth largest haircare brand in the country. The financial details of the deal were not disclosed.
Another key transaction in the Brazilian market is the acquisition of Jequiti by the pharmaceutical company Cimed. [Initial Context] This deal, expected to close in 2024, involves Cimed acquiring Jequiti, a Brazilian cosmetics company primarily operating through direct sales. [Initial Context] The acquisition price was reported to be around R$ 450 million. [Initial Context]
Beyond these specific Brazilian company acquisitions, multinational corporations with a strong presence in the country are also engaging in strategic portfolio adjustments globally that can have implications for their Brazilian operations. For instance, Unilever completed the acquisition of the British refillable deodorant brand Wild in April 2025, aligning with the growing global and local demand for sustainable and natural personal care products.
Furthermore, Natura &Co, a major Brazilian multinational, has been actively integrating its Natura and Avon operations in Latin America as part of its "Wave 2" strategy. While not a traditional external M&A, this internal restructuring and integration process involves significant operational and strategic adjustments impacting its value chain in Brazil. As part of this integration, Avon's Global Innovation Center was moved to Brazil, and plans for a new factory in Cajamar, São Paulo, were announced.
Impact of M&A Movements on the Value Chain¶
These major M&A movements and strategic integrations have had and are expected to have a notable impact on various stages of the cosmetics value chain in Brazil:
| Value Chain Step | Impact of M&A Movements | Supporting M&A Examples |
|---|---|---|
| Research and Development (R&D) | Integration of R&D capabilities and expertise between merged entities. Increased focus on specific product categories (e.g., haircare for Skala, sustainable personal care for Unilever/Wild). Potential for accelerated innovation through shared resources. | Advent/Skala (acceleration of innovation), Unilever/Wild (access to cutting-edge R&D for sustainable products), Natura &Co integration (Avon Global Innovation Center moved to Brazil). |
| Sourcing and Production of Raw Materials and Packaging | Expanded manufacturing capacity and optimized production processes through investment and integration. Potential changes in sourcing strategies as companies leverage combined supplier networks or focus on specific ingredient profiles (e.g., sustainable). | Advent/Skala (expansion of manufacturing capabilities), Natura &Co integration (new factory in Cajamar planned). |
| Logistics and Distribution | Strengthening and expansion of distribution networks, particularly leveraging existing infrastructure of acquiring companies. Improved reach to new channels (e.g., pharmacy channel for Jequiti via Cimed). Optimization of logistics operations for greater efficiency. | Advent/Skala (expansion of distribution network), Cimed/Jequiti (leveraging Cimed's distribution, expansion into physical retail) [Initial Context]. |
| Marketing and Sales | Increased market presence and brand visibility through combined portfolios and marketing efforts. Potential for cross-selling opportunities across different product lines and brands. Targeting new customer segments. | Advent/Skala (increased brand presence internationally), Cimed/Jequiti (expansion of Jequiti's portfolio and reach). |
| Retail and Direct Sales | Expansion into new sales channels (e.g., physical retail for Jequiti). Strengthening of existing channels through increased product offerings and potentially enhanced support for sales networks (e.g., direct sales consultants). | Cimed/Jequiti (expansion into physical retail, leveraging direct sales) [Initial Context], Natura &Co integration (impact on direct sales network). |
| Post-Consumer | Potential for increased investment in sustainable packaging and reverse logistics initiatives, particularly driven by acquisitions or integrations with a strong sustainability focus. | Unilever/Wild (commitment to sustainability and reducing environmental impact). |
Overall, these M&A activities indicate a strategic focus on strengthening market position, expanding reach, enhancing capabilities across the value chain, and aligning with key consumer trends in the dynamic Brazilian cosmetics market.
References¶
- Echemi
- Investegate
- PR Newswire
- IFAC
- S&P Global
- The CFI Group
- igc partners
- cloudfront.net
- PE Hub
- Cosmetics Business
- KPMG LLP
- Ethical Marketing News
- Fortune Business Insights
- IndustryARC
- Portal CIBRACOM