Procter & Gamble is set to acquire a fast-growing beauty brand geared toward younger buyers.
On Monday (15), P&G Beauty announced in a news release its acquisition of New York-based Farmacy Beauty, pending regulatory approval. Terms of the deal were undisclosed.
Launched in 2015, Farmacy Beauty bills itself as being “farm-to-face,” offering buyers science-based, sustainable skin care. Its products are available through Sephora, Amazon and QVC, among other retailers.
The star ingredient used throughout Farmacy’s range is its patented Echinacea GreenEnvy complex – an antioxidant concoction that helps to firm skin and protect from free radicals.
As per reports, Farmacy is expected to generate around £59 million in net sales by the end of 2021.
Mina Chae, Farmacy’s vice president of global marketing, will become the president and CEO. David Chung, Farmacy’s founder and a serial entrepreneur, will remain as an adviser for a year.
Terms of the deal have not been revealed, and is still subject to regulatory approval.
“We’ve had our eyes on the brand for quite a while,” Markus Strobel, President of Skin and Personal Care for P&G Beauty told WWD.
“It’s an attractive brand with amazing potential and unusual positioning – deeply rooted in science combined with natural ‘farm-to-face’ ingredient sourcing.
“This combination is super attractive and fills a space in our portfolio that we don’t have.”
Olay, Old Spice, Head & Shoulders and Herbal Essences are among the brands in P&G’s beauty care category. The recent acquisition is expected to refresh its consumer audience, which is generally aimed at an older demographic due to its brand portfolio.
Chung, also the founder of iLabs and Englewood Lab, insists Farmacy is in the right hands with P&G to go from strength to strength, reports said.