Behind every beauty brand is a makeup artist, a hairstylist, or a savvy entrepreneur with a penchant for beauty and a vision that is ahead of their time. Many of these brands’ origin stories are founded on passion, skill, and talent, with a bit of luck for some, and built from the ground up with blood, sweat, and tears—or, in beauty speak, founded on countless swatches and tests, lab experiments, and years of research and studies. These founders put so much of themselves into their brands, so much that they even name their brands after themselves.
So, why sell it? It’s hard to imagine selling off something one has worked so hard for—let alone handing over the reins to a new leader. But for many brands, being acquired by bigger conglomerates is the way to go for multiple reasons: to reach wider markets, be backed by more funding, and for expansion. And for successful brand acquisitions, it’s helped worthy and iconic products become the top-shelf picks of editors and experts, achieve holy grail status, or be considered cult faves by a wide market.
Here, we share a snapshot of some of these brands we’ve long known and been users of, and how they’ve been bought and handed over to bigger conglomerates—for the better.
Murad
“Clinical, but cool.” Founded in 1989, Murad was known to be the “first modern doctor brand” for its science-backed and anti-aging products as well as its skincare treatments. Dr. Murad was also known for his 19 patents and what he called his “skincare revolution” or a new perspective of skincare being seen as healthcare, too.
In 2015, the Murad brand was acquired by Unilever. Then Unilever CEO Paul Polman said that he and his team were “[looking] forward to working with Dr. Murad and his team to continue to grow the brand.”
On the other hand, Dr. Howard Murad said they’ve always looked for opportunities to “reach more people.” He also mentioned that through the acquisition, Murad now has the opportunity to expand its “reach” and enhance the brand’s growth, while staying true to the “founding principles of Murad.” He added, “There is a very bright path ahead and I am excited to work with Unilever to share our products with the world—together we can inspire every person that the Murad brand touches to live life beautifully.”
To date, Murad continues to be one of the trusted clinical skincare brands, listing its Retinol Youth Renewal Serum, Retinal ReSculpt Overnight Treatment, Vita C Glycolic Serum, among others, as its most popular products. An insider tip: You can actually get spa services at the Murad Center at Rustan’s. It’s worth trying!
Murad Retinol Youth Renewal Serum
P5,050, Rustan’s
Murad Retinal ReSculpt Overnight Treatment
P6,450, Rustan’s
Murad Vita C Glycolic Serum
P2,558, Rustan’s
Laura Mercier
Three women comprise the creation of the brand, Laura Mercier.
There is Laura Mercier, of course, a French make-up artist who is known to be the “pioneer of the Flawless Face.” She was the preferred make-up artist in the 80s for the cover shoots and editorials of Vogue, Allure, Vanity Fair, Glamour, W, and InStyle. She was also the top choice of several powerhouse celebrities, including Madonna.
Then there is Janet Gurwitch, founder and former CEO of the brand. In an interview in Houston Business Journal, she said that “between the three of us—we hired a consultant from Mary Kay—we went to a lab and created Laura Mercier.”
The interview then goes on to detail that the Neiman Marcus Group bought a 51 percent share in the company. Gurwitch didn’t think the company would sell the brand but they got a “phenomenal” offer in 2005. They then sold Laura Mercier in 2006 to Amway. In the same article, she revealed that selling Laura Mercier shares was a mistake and she would redo it if she could.
The company was then acquired by Shiseido Americas Corporation who, in turn, sold the brand (plus BareMinerals and Buxom) to Advent International (owner of Olaplex), under a new affiliate company, Orveon.
In the article by BeautyMatter, it states that Shiseido Americas Corporation, which is part of the Shiseido Company, “has been struggling.” Masahiko Uotani, President and CEO of Shiseido Group was also quoted as saying selling will allow the company “to [divest] these assets [and] focus on skincare.” The goal then was by 2023, to ensure that 80 percent of the profit came from skincare.
On the other hand, Tricia Glynn, partner at Advent, explained that they acquired the brand as they were “[setting] up the company for success, pursuing organic growth in these businesses, and building a modern beauty company at scale.”
Laura Mercier remains a top player to date, amid a competitive landscape and fast-paced trends. Its staples, such as the Tinted Moisturizer, Lip Glacé, Translucent Loose Setting Powder (or TLSP), and Pure Canvas Primer Hydrating, remain the top picks from the brand.
Laura Mercier Tinted Moisturizer
P1,950, Lazada
Laura Mercier Translucent Loose Setting Powder
P2,500, Lazada
Laura Mercier Pure Canvas Primer Hydrating
P2,900, Lazada
Tom Ford Beauty
There are two important and interesting things to know about the acquisition of the Tom Ford Brand (which includes Tom Ford Beauty).
First, it made Tom Ford a billionaire, and second, this fashion titan decided to sell to what the New York Times calls a “beauty behemoth” instead of a major fashion group. Whether this sets a trend or not, all eyes will be on how this acquisition will turn out.
For the Estée Lauder Company (ELC), this acquisition will allow them to expand and fortify their luxury portfolio given Tom Ford Beauty’s strong presence in the luxury fragrance, skincare, and makeup sectors.
One of the main reasons why companies are driven to add to their beauty portfolio is to create “new avenues for growth” especially in China, for one. The pandemic restrictions have made it challenging for what was once the massive driving force behind luxury beauty enterprises.
For Tom Ford, this is a welcome opportunity as he is “thrilled to see the ELC become the luxury stewards in this next chapter of the Tom Ford brand.”
For ELC, another reason for the deal is that this means it secures its earnings beyond its existing licensing agreement with Tom Ford Beauty which is set to expire in 2030. This also means ELC won’t need to pay royalty fees to Ford. However, it remains to be seen whether Tom Ford will continue to be a part of the company following the acquisition. To date, he continues to be named as its founder and CEO.
Tom Ford’s out-of-the-box and risque approach to beauty has caused quite a stir, and a slew of favorites: the Lip Color in Scarlet Rouge, Tobacco Vanille EDP, and Eye Color Quad, to name a few.
Tom Ford Lip Color in Scarlet Rouge
P3,3500, Rustan’s
Tom Ford Eye Color Quad
P6,100, Rustan’s
Kylie Cosmetics
Kylie Cosmetics has been one of the most successful, influential, and controversial brands in beauty.
From starting with three liquid lipsticks when it launched in November 2015, it generated over $420 million in its first 18 months and has since grown to include skincare, fragrance, and baby lines in its collection.
In a strategic move in November 2019, beauty giant Coty acquired a 51 percent majority stake in Kylie Cosmetics for approximately $600 million, valuing the brand at $1.2 billion. The collaboration aimed to leverage Coty’s operational expertise, allowing Kylie Jenner and her team to concentrate on the creative aspects of product development and “build the brand into an international powerhouse.”
Eighteen months later, Coty re-launched Kylie Cosmetics and for the first time, made it available at brick-and-mortar stores. This allowed the brand to grow by a “double-digit percentage.”
However, recent developments suggest a potential shift in the trajectory of Kylie Cosmetics. According to a Bloomberg article dated August 2023, Kylie Jenner has engaged in “informal talks” with Coty to explore the possibility of buying back the 51 percent stake that she sold to the beauty conglomerate. The discussions reportedly have arisen due to “disagreements over price, valuation, and management.”
There is also possibly the matter after the deal was formalized that revealed the revenue of Kylie Cosmetics through the years, as well as a steep decline in online sales between 2016 and 2018. This proved the business was lower in size or scale than it was announced to be and that Coty had paid quite a premium or “paid up for a ‘high-growth’ brand that is actually a much smaller business than it was just a few years ago.”
To date, Kylie Lip Kits, Tinted Butter Balm, Pressed Blush Powder, Lip Liner, and Kyshadow Pressed Powder Palettes remain some of its buzziest products.
Kylie Lip Kits
P2,200, Trunc
Pressed Blush Powder
P1,300, Trunc
Oribe
Oribe (Or-bay) Canales is the man behind this prestigious hair brand which was also a formidable force in the 90s. His story reminds us of Kevyn Aucoin and Laura Mercier as he also worked with the supermodels and magazines in their heydey (except that he started in the 80s) and created the “sexy, big, beautiful hair.” One of his most famous celebrity clients is none other than Jennifer Lopez, and he is credited for her hair on her debut album, “On The 6” (1996).
1995 was also momentous as Oribe opened a salon in Miami and launched his first product line. It was pomade housed in tin packaging “bearing his image as a 1950’s muscle man.” Karl Lagerfeld, who was one of his friends, also suggested he design the bottles patterned after dishwashing liquid.
In December 2017, Oribe Hair Care was acquired by Kao. Daniel Kaner, co-founder and then co-president of Oribe Hair Care was named president. In a press release from Kao’s website, Cory Gauts, Global President of Kao Salon Division only had positive words about the partnership. “Daniel’s appointment not only guarantees the continuity of all that is extraordinary about Oribe but is also a progression of our company’s mission to appeal to the most artistic and business-minded salon professionals in the world.” This would also mean that Oribe would be able to expand globally.
For Kaner, the acquisition was the “next step in its transformative journey.” And what a journey it has been. In an article in WWD, Kaner said that “joining Kao has been really fantastic.” Sales of their products will exceed $170 million this year, which is more than “nearly double what they were when Kao acquired the company in 2017.” The brand has also expanded its presence to 42 countries. Sadly, Oribe passed away in 2018.
Oribe’s most in-demand products are the Dry Texturizing Spray, Gold Lust line, Gold Lust Nourishing Oil, and the Royal Blowout Heat Styling Spray.
Oribe Dry Texturizing Spray
P4,200, Lazada
Oribe Royal Blowout Heat Styling Spray
P4,674, Lazada
Kevyn Aucoin
In the 90s, a partnership between a makeup artist and a muse wasn’t as common as it is today. Kevyn Aucoin paved the way for this collaboration and was the go-to for supermodels Naomi Campbell, Cindy Crawford, Linda Evangelista, Christy Turlington, and Kate Moss.
Naomi Campbell only had high praises for Aucoin and famously said, “I was not going to go to any other person, besides Kevyn’s chair. There was always a line, but he was the only makeup artist in town who understood black skin… I’m not going anywhere else.”
He also worked with numerous celebrities like Madonna, Janet Jackson, Liza Minelli, Stevie Nicks, Courtney Love, Lisa Marie Presley, Julia Roberts, Gwyneth Paltrow, Tori Amos, and Cher
Aucoin became more and more visible as he worked on music videos, backstage at Fashion Week, fashion campaigns, a guesting for The Oprah Winfrey Show, 19 Vogue covers (in a span of three years), and even an “on-screen debut as himself in the infamous ‘She’s fashion roadkill’ episode of Sex and the City.”
His makeup brand, Kevyn Aucoin Beauty, which was founded in 2001, rolled out products that the public clamored for. His brand stood for “expanding the definition of what we consider acceptable, normal, and beautiful” and believed that “every woman is beautiful.” He is also credited with pioneering the celebrity makeup category and popularizing contouring techniques which he details in his book, “Making Faces” (1997).
Unfortunately, the beauty icon tragically passed away in 2002. Following his death, ownership of the brand transitioned to others and was subsequently acquired by Kevyn Aucoin Beauty, LLC, and then by Manzanita Capital in 2015.
Later on, Kevyn Aucoin Beauty was acquired by Harmay from Manzanita Capital in 2021 and the company’s plans included driving “a new era of expansion for Kevyn Aucoin in China.”
The brand has persistently carried on, producing and promoting cosmetics that draw inspiration from Kevyn Aucoin’s enduring legacy and makeup techniques.
Kevyn Aucoin Sensual Skin Primer
P2,738, Zalora PH
Kevyn Aucoin The Neo Bronzer
P2,608, Zalora
Kate Sommerville
In 2004, Kate Sommerville opened her first Skin Health Experts Clinic in the heart of Hollywood. The following year, one of Kate’s celebrity clients asked her to bottle her clinic’s super facial so she could take it on location while filming under harsh lights. As they say, the rest is history–Kate’s holy grail product, ExfoliKate® Intensive, was born. Today, her clinically perfected products remain as cult faves and go-tos of many.
In 2015, Unilever acquired Kate Sommerville. CEO Vasiliki Petrou of Unilever SVP Prestige Brands said in a press release that Kate Sommerville is going to be part of the “Unilever Prestige personal care portfolio. It is a highly differentiated brand that is well placed in the dermo-cosmetic segment of the skin care category.” During those times, Kate Sommerville was also expanding its presence in Asia.
Kate Sommerville was actually one of the brands first acquired by Unilever. Acquisitions allow companies to play, so to speak, in a segment they haven’t participated in before and for the brand, experience growth exponentially. As for founder Kate Sommerville herself, she believes that the acquisition would help propel the brand and take it to the “next stage of [its] journey.”
She does however believe that a founder, despite selling their businesses might not thrive at all. “The founder is the messenger. Once you cut the messenger’s head off, and if the company doesn’t keep the same values [of the founder] and that pureness, [it won’t do well].”
