Yellow Wood acquires ChapStick from Haleon in $512m deal

Jan 26, 2024 | News

Suave Brands Company, a portfolio company of Boston-based private equity investment firm Yellow Wood Partners (Yellow Wood), is to acquire the ChapStick brand from global consumer health firm Haleon, in a deal valued at around $510m.

The transaction, which is expected to close in the first half of 2024, subject to the completion of customary closing and regulatory approvals, comprises a cash payment of $430m and as well as a stake in the acquiring company, valued at around $80m.

ChapStick invented the lip care category in the 1880s with the launch of a now-iconic lip balm that made ChapStick a household name. Today, ChapStick is synonymous with the product category – it is the number one brand by volume and has over 80% brand awareness.

Suave Brands Company is a value-focused personal care brand that sells products across hair, body, skin and antiperspirant deodorant segments.

Get the week’s top news delivered directly to your inbox – Sign up for our newsletter

Sign up

Yellow Wood’s portfolio of consumer brands includes global foot care brands Dr Scholl’s and Scholl International; Beacon Wellness Brands, led by its anchor brand PlusOne, a sexual wellness device brand; beauty brands Real Techniques and EcoTools; skincare brand Byoma, and self-tanning brands Isle of Paradise, Tanologist and TanLuxe.

In December, Yellow Wood announced the pending acquisition of the Elida Beauty portfolio of brands from Unilever, which includes Q-Tips, Caress, TiGi, Ponds, St Ives, and Noxzema, as well as European brands including Brut, Impulse, Monsavon, and Timotei.

Source: Private Equity Wire

Can’t stop reading? Read more