Shiseido Americas has struck an agreement to acquire fast-growing prestige skincare brand Drunk Elephant. The move, said Shiseido Group, will enhance its presence in the global prestige skincare market.
Drunk Elephant was founded in 2012 by Tiffany Masterson as a cross-generational brand for all skin types, and has since experienced strong growth among Gen Z and Millennials.
Its products use biocompatible ingredients that directly benefit the skin’s health, noted Shiseido, which highlighted Drunk Elephant’s “effective products, unique and playful brand voice, and strong community engagement”.
The transaction was led by Shiseido Americas and the New York-based Shiseido Global M&A team, in coordination with Shiseido Company. Upon closing, Drunk Elephant will operate within Shiseido Americas. Founding Partner and Chief Creative Officer Tiffany Masterson will continue in her role as Chief Creative Officer and assume the additional role of President, reporting to Shiseido Americas CEO and Chief Growth Officer Marc Rey. The transaction is subject to regulatory approvals and closing conditions and is expected to close before year end.
Drunk Elephant had consolidated sales of US$75 million in the year ended 31 December 2018, with projected sales of US$125 million in 2019.
Shiseido President and CEO Masahiko Uotani said: “We are thrilled to announce the acquisition of Drunk Elephant, one of the fastest-growing prestige skincare brands in history. This transaction is squarely aligned with Shiseido’s Vision 2020 goal of accelerating growth and creating value through strategic partnerships. Drunk Elephant’s approach strongly resonates with its highly engaged and loyal consumers, who value the integrity and effectiveness of Drunk Elephant’s formulations combined with a fun, curious approach.
“I am confident that under Marc Rey’s leadership in the Americas and Shiseido’s global platform and unique resources, we will strongly support Drunk Elephant on its ongoing growth trajectory. I am very pleased to welcome Tiffany and the Drunk Elephant team to the Shiseido Family and together, pursue our long term mission of ‘Beauty Innovations for a Better World’.”
Marc Rey said: “This new and incredibly exciting partnership builds on Shiseido’s significant momentum and successful track record of acquiring distinctive, best-in-class brands. Drunk Elephant is changing the way people understand and experience beauty by offering products that are effective and clean-compatible.
“Drunk Elephant is built on a strong brand foundation and a philosophy that fits perfectly with Shiseido’s values and skincare heritage. Our innovative and people-first cultures are well aligned, and we share an unwavering commitment to our consumers. I also believe the brand will contribute to the business performance of Shiseido Americas.”
Tiffany Masterson said: “I started this business as an industry outsider, and from the beginning I did things a little differently. To join with a powerhouse beauty company such as Shiseido that leads the industry in innovation and global excellence is a dream come true for me and for Drunk Elephant. We share similar values, most importantly an unwavering commitment to the consumer. I chose a partner who will let the brand continue to be itself, with the same formulations and the same team.”
Shiseido said it will use its global platform and resources to expand Drunk Elephant in the Americas and internationally, including in Europe and Asia, supported by Shiseido’s Global Innovation Center and Digital Center of Excellence.
