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General Atlantic ‘closing in on Morphe takeover’
Posted on Thursday, 18 July 2019 13:14
Private equity investor General Atlantic is close to completing an acquisition of a majority shareholding in San Francisco-based cosmetics maker Morphe, people in the know told Reuters.

According to the sources, the parties are nearing a transaction which will value the business, which was established in 2008, at more than USD 2.00 billion, including debt.

The people, who did not wish to be identified as the matter is confidential, noted that all of Morphe’s existing investors will continue to hold stakes in the company.

Completion is expected to follow within the next few weeks, they added.

None of the parties involved have commented on the report.

One of Reuters’ sources said proceeds of the divestment will be used to finance Morphe’s growth, as well as for making potential acquisitions with a view to becoming a global cosmetics brand.

Morphe is known for its collaborations with social media influencers, particularly those from within the online makeup tutorial field.

According to Zephyr, the M&A database published by Bureau van Dijk, there have been 161 deals targeting toilet preparation manufacturers announced worldwide since the beginning of 2019.

Of these, the most valuable was agreed in May, when Natura Holding, the holding company of Natura Cosmeticos, signed on the dotted line to pick up US-headquartered Avon Products for USD 4.23 billion.

This was followed by a USD 1.75 billion deal in which JAB Holding Company, via Cottage Holdco, increased its stake in New York-based Coty from 40.1 per cent to 60.0 per cent.

Other cosmetics assets to have been targeted this year include the skincare activities of Laboratoires Filorga, which Colgate-Palmolive agreed to buy for USD 1.68 billion in July, while Unilever, Oriflame Holding and ELEMIS have also been targeted.

© Zephus Ltd