Winky Lux, a New York-based cosmetics and skincare company, has been acquired by CORE Industrial Partners.
Winky Lux is best known for its high-quality, clean, and cruelty-free products including lip balms, mascaras and eyebrow pencils, under-eye concealers, facial and skin cleansers and moisturizers.
The company’s products are sold online and through major retailers including Target, ULTA, and Shoppers Drug Mart. Winky Lux was founded in 2015 by CEO Natalie Mackey and Nate Newman and is headquartered in New York City.
“This partnership enables us to meet customer demand, scale our operations, maximize existing retailer partnerships with Target, ULTA, and Shoppers Drug Mart, and reach new heights in product innovation,” said Ms. Mackey.
CORE’s buy of Winky Lux follows its formation in September 2023 of Cohere Beauty to consolidate its investments in Arizona Natural Resources (2020), HealthSpecialty (2021), Marianna Beauty (2021), and Contract Filling (2022). Today, Cohere Beauty is a contract manufacturer, formulator, and distributor of customized hair care, skin care, fragrance, and cosmetic products. The Phoenix-headquartered company has operations in Arizona, California, Nebraska, and New Jersey with a combined 800,000 sq. ft. of manufacturing space.
The global beauty market is experiencing strong growth, driven by evolving consumer preferences and increasing disposable incomes. According to Statista, the beauty and personal care market worldwide is projected to grow by 3.3% annually from 2024 to 2028, reaching a market volume of $737 billion by 2028. This growth is influenced by several factors, including the rising demand for clean and sustainable beauty products, as well as the impact of social media on consumer behavior.
“The growth prospects and underlying demand drivers of the beauty industry remain highly attractive,” said John May, the managing partner of CORE. “We’re confident the strength of the Winky Lux brand combined with our resources and operational experience will assist their leadership team in executing against their long-term plans for growth. We are excited to further our participation in the beauty industry with the Winky Lux partnership.”
Chicago-based CORE makes control equity investments of up to $100 million in North America-based companies with revenues of up to $200 million and EBITDA of up to $20 million. Sectors of interest include a range of specialty verticals within the manufacturing and industrial technology sectors.
In February 2024, CORE announced the above target closings of two new funds with a combined $887 million of capital. The two funds are CORE Industrial Partners Fund III LP with $685 million of capital, and CORE Industrial Services Fund I LP with $202 million of capital.
Raymond James was the financial advisor to CORE on the buy of Winky Lux.
© 2024 Private Equity Professional | August 2, 2024
