Despite overall M&A activity declining, DTC brands including Richer Poorer, Great Jones and Scotch & Soda have already found buyers this year.
When 2023 started, a fight for funding was ramping up following a year of slowed activity.
Since then, a variety of new factors — such as rising interest rates and a spike in inflation, according to a GlobalData report — have only made the situation more complex for brands hoping to raise cash or find an exit.
During the first quarter, acquisitions of venture capital-backed companies fell to its lowest quarterly level in a decade, according to data from PitchBook. Overall, merger and acquisition activity reached about $582 billion globally during Q1, marking a 48% decline year over year, according to data from Dealogic.
However, deals were still signed across the direct-to-consumer industry over the past six months.
Some big sales during the first half of the year involved major players in the retail space. Mass retailer Walmart sold off two DTC brands in its portfolio — plus-size brand Eloquii and menswear company Bonobos — in a move that showed how its focus has turned more toward its core business. Meanwhile, beauty powerhouse L’Oréal acquired luxury brand Aesop for $2.5 billion.
For some, exits stemmed from woes such as bankruptcy. Lifestyle brand Scotch & Soda agreed to be acquired by Bluestar Alliance after it initially filed for bankruptcy in its home country of the Netherlands. Additionally, the owner of the makeup brand Morphe was acquired by lenders for about $690 million.
Other deals seemed like a long time coming, particularly in the case of Birchbox. The beauty box subscription service had a slew of customer and vendor complaints against it in the years after it was acquired by FemTec Health. Birchbox was acquired by Retention Brands in May, just a few weeks after Birchbox’s co-founder Katia Beauchamp demanded about $2 million from FemTec Health and its CEO Kimon Angelides, alleging they failed to pay the agreed upon sum in a July 2021 Share Purchase Agreement.
But who else got snatched up during the first half of 2023? Here’s a look at DTC brand acquisitions so far:
- P&G acquires haircare brand Mielle OrganicsBy Dani James • Jan. 12, 2023The textured hair brand — founded in 2014 by husband-and-wife duo Monique and Melvin Rodriguez — said it has no plans to change existing formulas. Read the full article ➔
- Amass Brands acquires operating assets of wine company WincBy Dani James • Jan. 27, 2023The spirits conglomerate is taking on several brands from Winc’s portfolio, which filed for bankruptcy in December due in part to declining DTC sales. Read the full article ➔
- Vera Bradley shakes up leadership, takes full ownership of Pura VidaBy Daphne Howland • Jan. 30, 2023The DTC brand’s founders left, along with much of Vera Bradley’s C-suite, as new CEO Jacqueline Ardrey slashes costs. Read the full article ➔
- Scotch & Soda acquired by Bluestar AllianceBy Dani James • March 27, 2023The fashion lifestyle brand filed for bankruptcy in the Netherlands last week, and now joins a portfolio that includes Justice and Brookstone. Read the full article ➔
- Lenders acquire bankrupt Morphe owner for $690MBy Nate Delesline III • March 30, 2023Forma Brands reached an agreement to be acquired by Jefferies Finance and Cerberus Capital Management after filing for Chapter 11 in January. Read the full article ➔
- L’Oréal to acquire Aesop for $2.5BBy Dani James • April 4, 2023The beauty corporation is buying the luxury brand from Natura & Co., which took a majority stake in 2012 and also operates The Body Shop. Read the full article ➔
- Casper to sell Canadian operations for $20.6MBy Dani James • April 10, 2023The disruptor is handing over its Canadian business to traditional retailer Sleep Country, which operates 290 corporate-owned stores and 20 warehouses. Read the full article ➔
- Universal Standard acquires plus-size brand HenningBy Dani James • April 14, 2023As a result of the deal, Henning founder Lauren Chan is joining the direct-to-consumer company as head of brand partnerships. Read the full article ➔
- Walmart is selling Bonobos to Express, WHP Global for $75MBy Daphne Howland • April 14, 2023The retail giant paid more than four times that much when it acquired the DTC menswear brand six years ago. Read the full article ➔
- Plus brand Eloquii the latest to leave Walmart’s DTC portfolioBy Daphne Howland • April 21, 2023Plus-size specialist FullBeauty Brands is buying the cult favorite for an undisclosed amount, and the label’s founder is staying on. Read the full article ➔
- Authentic Brands Group strikes deal to acquire Vince’s intellectual propertyBy Laurel Deppen • April 25, 2023Vince Holding Corp. hopes the deal will help it strengthen its balance sheet and expand internationally. Read the full article ➔
- Francesca’s snaps up basics brand Richer PoorerBy Daphne Howland • May 2, 2023Two years out of bankruptcy and under private equity ownership, the mall-based retailer said it’s on the lookout for more acquisitions. Read the full article ➔
- Solo Brands acquires TerraFlameBy Caroline Jansen • May 11, 2023The move helps build out the company’s portfolio of brands, which also includes Solo Stove, Chubbies, Oru Kayak and Isle. Read the full article ➔
- Birchbox assets acquired by Retention BrandsBy Dani James • May 15, 2023After months of growing vendor and customer complaints at Birchbox, parent company FemTec Health is winding down its business and selling off its assets. Read the full article ➔
- B. Riley acquires equity interest in Scotch & Soda through BluestarBy Lara Ewen • May 19, 2023The arrangement solidifies financial ties between the financial group and the brand management company, and adds to a growing stable of fashion labels under their control. Read the full article ➔
- Authentic Brands Group acquires Hunter Boots intellectual propertyBy Laurel Deppen • June 5, 2023The brand conglomerate said the deal was part of an effort to diversify its portfolio outside of the U.S. Read the full article ➔
- Great Jones sold to maker of KitchenAid, FarberwareBy Caroline Jansen • June 6, 2023Under Meyer, the DTC cookware brand’s co-founder and CEO, Sierra Tishgart, will continue to lead the brand. Read the full article ➔
- DTC candle brand Otherland acquired by CurioBy Dani James • June 9, 2023The luxury candle company joins Curio Brands’ portfolio, which includes fragrance lines Capri Blue and Thymes. Read the full article ➔
