The "pure beauty" brand is expected to help strengthen the Japanese company's position in the global cosmetics industry.
Talk of a sale to Drunk Elephant has been going on for months. Potential buyers have been named, including the Estée Lauder Companies. However, the brand eventually went to Japanese cosmetics manufacturer Shiseido, who will buy out 100% shares of Drunk Elephant for $845 million.
The deal is expected to be closed before the end of 2019 and will be one of the most expensive this year in the cosmetics market. It will allow Shiseido to significantly strengthen its position, which is already constantly strengthening - since the beginning of the year, the value of the company's shares has increased by 1.8%.
As for Drunk Elephant, this brand will definitely benefit from the takeover. Using Shiseido's global platform and resources, he will be able to expand into new markets in South America, Europe and Asia.
Drunk Elephant is an American skin care company. Her story began in 2012, she was founded by a housewife Tiffany Masterson. The brand has shown very rapid growth, becoming extremely popular among representatives of different generations, but mainly among millennials and Gen Z.
Drunk Elephant was one of the first companies to start the "pure beauty" movement, a term used to describe the trend of putting consumer safety at the forefront. After all, not all organic components are useful and not all synthetic ones are harmful. Manufacturers of "pure beauty" use a variety of ingredients, the main thing is that they are completely safe.
It is reported that Tiffany Masterson will remain in the leadership of Drunk Elephant and will continue to influence the development of the company.