Mineral Fusion, Andalou Naturals Head to Market
Mineral Fusion and Andalou Naturals are for sale.
The brands, owned by Australian conglomerate BWX, are heading to market, Doug Hosking, BWX’s president of Americas, confirmed to WWD.
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BWX acquired Mineral Fusion in 2017 for $38.4 million. At that time, Mineral Fusion had about $24 million in sales; later that year, it also acquired Andalou Naturals. At that time, the deals gave BWX entry into the U.S. market. Its current brand portfolios include Go-To and Sukin, according to its website.
Per a recent investor presentation, BWX saw revenues fall to 79.7 million Australian dollars in the first half of fiscal 2023, a drop from 97.6 million Australian dollars the year prior.
Those brands, however, are a bright spot in the portfolio. Industry sources say each has an annual sales volume of $25 million to $35 million in U.S. dollars.
“It’s a pivotal time for both Andalou Naturals and Mineral Fusion to break away from the BWX umbrella and seek exciting acquisition opportunities that will allow the brands to continue fostering growth in the natural channels while focusing on heightened retail and digital expansion and product innovation,” Hosking said.
Hosking didn’t comment on the figures, but did note, “The brands have been growing. The pandemic changed a lot, certainly in the natural channel. The brands themselves are known for innovation and really have the highest percentage of natural ingredients against competitors.”
Hosking has tapped KPMG Capital Finance Group to oversee the sale.
After a potential acquisition, Hosking plans to expand the brands’ presences in its current channels — they include Whole Foods and Sprouts as its main distributors — as well as growing its presence in different geographies. “We clearly have some interesting international things going on. We have some strong positions, notably in South Korea,” he said. “But we see substantial opportunities in the U.S. and Canada. Most of our growth will come from outside of the natural channel and building our brand presence outside of that.”
Beauty’s M&A market also seems to be gaining steam after a sluggish first half of 2023. As reported by WWD, prestige hair care brand K18 is also said to be exploring a sale.
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