Japanese beauty company Shiseido has agreed to by US skincare brand Drunk Elephant in a deal reported to be worth $845 million.
The deal mirrors a trend in which major international cosmetics brands have been snapping up on-trend startups, particularly those with strong eco or health credentials.
Drunk Elephant was founded in 2012 by Tiffany Masterson as a solutions-oriented, cross-generational brand for all skin types, and has since experienced exponential growth across a full range of consumer demographics, including Gen Z and Millennials. Its curated assortment of iconic hero products use what the company describes as “biocompatible” ingredients formulated to benefit skin health.
From biocompatible, comes Drunk Elephant’s particular positioning as a “clean compatible” skincare brand. The company rejects familiar ‘natural versus synthetic’ distinctions and positively embraces “cutting-edge synthetics”, where it says they are “clinically effective and biocompatible”. At the same time it excludes the use of certain natural ingredients, such as “disruptive essential oils that block the pathway to healthy skin”.
Drunk Elephant will be able to leverage Shiseido’s global platform and resources to expand into new and existing markets both in the Americas and internationally including Europe and Asia.
Masahiko Uotani, president and CEO of Shiseido, 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.”