Advent International Acquires Skala Cosméticos Brazilian Hair Care Brand
Updated Feb. 28 4:42 p.m. EST
Advent International is betting on hair again — this time, in Latin America.
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The private equity fund behind Parfums de Marly, Olaplex and Orveon has acquired a majority stake in Skala Cosméticos, a vegan hair care brand based in Brazil. The funding came from Advent’s managed funds, LAPEF VII, dedicated to the region, where consumer and retail companies comprise around 30 percent of Advent’s investments. Further terms of the deal were not disclosed.
Skala is present in 45 percent of Brazilian homes and exports to 40 countries, according to a joint statement from the company and PE firm.
Founded in 1986, Skala is in expansion mode, and is Brazil’s fourth largest hair care brand. The investment will enable Skala to “expand its manufacturing capacity and distribution network as well as increase the brand’s presence in international markets,” the companies said.
As part of the deal, Cyro Gazola will assume the chief executive officer role, while current executives — including former CEO Antonio Sousa — will remain as shareholders and join the company’s board. Executives Maria Claudia Lacerda and Publio Emilio Rocha will also join the board.
“Maria Clauda Lacerda, Antonio Sousa and the Skala team have built a strong brand, recognized for its ability to produce high-quality products that have a dedicated and connected customer base,” said Rafael Patury, managing director of Advent’s São Paulo office, as well as the firm’s co-head of consumer and retail practice in Latin America, in the statement.
The beauty sector overall in Brazil is more than $25 billion, Patury said in an interview, noting that “Skala is the fastest-growing hair care brand in the country, and has been growing 30 percent per year for the last eight years.” Treatment products for textured hair types from Skala, he continued, have more than 50 percent of market share by volume.
He didn’t quantify sales, but industry sources pegged 2023 sales at $200 million.
“Sales internationally are still low, but they’re growing at twice the rate than they are in Brazil. We did a survey about the way Brazilian women treat themselves and their hair, and it resonated with other women around the world with these products,” he continued. That resonance includes around 2.5 million followers across Facebook, Instagram and TikTok.
“Our partnership with Advent will help accelerate Skala’s growth in both domestic and international markets, while allowing us to advance important agendas such as operational excellence and innovation at scale,” Sousa added of the deal.
Beauty overall swelled 21 percent across countries in Latin America, according to Circana, making it the fourth largest region globally behind the U.S., China and the European Union.
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