Beauty conglomerates are betting big—and failing—on indie brands. From REN to Touchland, here’s where beauty M&A goes wrong and who’s getting it right.
Mini rex rabbit appearing from a top hat, isolated on white
Unilever quietly shut down REN Clean Skincare last week. No farewell campaign. No social sendoff. Just a silent end for one of clean beauty’s earliest pioneers. REN—once a sustainability icon—is now the latest casualty in the graveyard of beauty brand acquisitions gone wrong.
This isn’t just a Unilever story. Over the past decade, nearly every major beauty conglomerate has chased indie brand goldmines, only to neglect, mismanage, or overpay for hype. The result? A broken M&A playbook that’s eroding brand equity, confusing consumers, and wasting capital.
The Autopsy of REN
Founded in 2000, REN Clean Skincare was a pioneer that helped define the modern clean beauty movement—years before retailers like Sephora embraced the category. Unilever acquired REN in 2015 as part of a push into purpose-led, premium skincare. But behind the scenes, REN was slowly losing steam, suffering from shifting leadership, diluted brand strategy, and a reduced product lineup.
REN Skincare
By 2023, REN had cut nearly 30 SKUs. By 2025, it failed to attract buyers in a divestment process and was ultimately shut down.
REN didn’t collapse under consumer disinterest. It collapsed under corporate misalignment.
REN didn’t collapse under consumer disinterest. It collapsed under corporate misalignment.
The Deciem Drift
Even structurally sound brands can falter when acquisitions kill momentum.
Deciem’s The Ordinary once led a movement in clinical transparency and radical affordability. But after Estée Lauder acquired a majority stake in 2021, innovation slowed, competitors like The Inkey List gained ground, and the brand’s first-mover advantage eroded. It’s still growing, but no longer defining the category it helped build.
Capital can fuel a brand—but it can’t substitute for conviction.
Two Paths to the Graveyard: Mismanagement vs. Misjudgment
Beauty M&A failures generally fall into two buckets: brands that were mishandled, and brands that were misjudged.
1. The Mishandled: Brand Souls, Lost
REN joins a growing list of beloved brands that deteriorated post-acquisition: Rodin Olio Lusso, Nude Skincare, Fekkai, Christophe Robin, and Urban Decay. These were brands acquired for their soul—then had it stripped.
Founders exited. Brand clarity evaporated. Strategy was deprioritized or cannibalized within bloated portfolios. Decision-making slowed under matrixed structures. The original spark that consumers loved? Extinguished.
One of the clearest cautionary tales is The Body Shop. Founded in 1976 by activist and entrepreneur Anita Roddick, the brand championed ethical sourcing, cruelty-free formulations, and sustainability—long before these were industry buzzwords. But when L’Oréal acquired it in 2006 for €652 million, the brand’s purpose-led identity began to erode.
During its time under L’Oréal, The Body Shop experienced:
- Mission mismatch: A brand built on anti-corporate and cruelty-free values clashed with L’Oréal’s scale-first ethos.
- Brand dilution: Loyal customers felt the acquisition undermined the brand’s activist credibility.
- Lack of innovation: The Body Shop stagnated while indie competitors surged ahead.
- Retail-heavy strategy: L’Oréal underinvested in e-commerce, keeping the brand tethered to a declining store footprint.
As Roddick once said: “Being good is good business—but only if you don’t forget which comes first.” That ethos was sidelined in the name of scale.
In 2017, L’Oréal sold the brand to Natura &Co, which promised to restore its mission. But under Natura, The Body Shop struggled to regain relevance amid operational and market headwinds. By 2023, it was sold again—this time to private equity firm Aurelius Group—and entered administration in early 2024, shuttering dozens of stores in the UK (BBC).
Across three owners, The Body Shop never fully recovered. A brand built on activism was repeatedly reshaped by entities that misunderstood—or simply ignored—its founding values.
2. The Misjudged: Valuations Untethered from Reality
At the other end of the spectrum are brands acquired not for their fundamentals, but because they fit the moment’s hype.
Dollar Shave Club was one of the earliest cautionary tales. Unilever acquired it in 2016 for $1 billion to ride the DTC wave. But the brand never scaled profitably. High churn, rising CAC, and operational bloat plagued the business. In 2023, it was quietly offloaded to private equity in what insiders called a “deeply distressed” sale (WSJ).
Then came Touchland—the design-forward hand sanitizer brand acquired by Church & Dwight for $700 million, with up to $180 million in earn-outs. That values the company at 5.4x revenue and 12.7x EBITDA (WSJ). Most beauty deals fall between 2–4x revenue and 8–12x EBITDA (Capstone Partners).
Touchland is sleek, profitable, and social media-savvy—but it’s still a single-category player in a post-pandemic world. As Covid-era hygiene urgency fades and its Gen Z customer base’s behavior shifts, sustainability of demand remains unclear. Also, Church & Dwight seems like a mismatch for Touchland since it isn’t traditionally known for prestige beauty or wellness brands. Its portfolio is rooted in mass-market essentials like Arm & Hammer, OxiClean, and Trojan, making this acquisition an ambitious and potentially risky leap into trend-driven personal care.
By contrast, K18, with its patented bond-building tech, was acquired by Unilever for ~$700 million just four years after launch—around 6x 2023 sales (The Information). When a brand demonstrates clear product defensibility and category leadership, buyers move fast.
Beauty M&A Can Be A FOMO-Fueled Betting Game
It’s also worth noting a larger pattern at play: beauty conglomerate M&A teams are increasingly falling for the same hype cycles that early-stage venture capitalists create. In pursuit of “the next big thing,” they’re buying into glossy narratives, bloated VC-style valuations, and social media momentum which can be ephemeral, rather than assessing strategic fit, product defensibility, or long-term scalability. In doing so, they’ve turned what should be a methodical brand-building function into a high-stakes betting game.
The Sustainability Paradox
Beauty conglomerates frequently tout their commitments to sustainability, clean formulations and ethical business practices—especially when acquiring purpose-driven brands like REN, The Ordinary, or Rodin. But their track records often tell a different story. Shuttering brands, cutting product lines, and walking away from long-term investments aren’t just business decisions—they’re antithetical to the very principles of sustainability these corporations claim to uphold.
“Buying a brand built on trust and transparency and then discarding it without transparency or consumer closure is a contradiction.”
The rhetoric may emphasize eco-consciousness and ethical leadership, but the execution often looks more like corporate greenwashing than genuine sustainability.
Why Beauty Acquirers Keep Getting It Wrong
The common denominator in both failure modes is a fundamental disconnect between the acquirer’s operating playbook and the acquired beauty brand’s original DNA.
Too often, strategic buyers underestimate what it takes to scale a beauty brand without breaking it:
- Creative brand cultures don’t translate well into matrixed org charts
- Founder-led speed doesn’t survive quarterly reporting cycles
- Boutique positioning doesn’t always mesh with mass-market retail expansion
- And when internal competition arises, new acquisitions lose out to legacy priorities
The New M&A Playbook for Founders and Investors
As cautionary tales pile up, founders and investors are rethinking what a “successful exit” really means.
Increasingly, indie beauty brands are opting for:
- Private equity over strategic buyers
- Long-term independence with operational support
- Controlled growth with clear brand vision
Investors, too, are watching closely. They’re asking whether a buyer is capable of not just distributing a brand but also preserving and evolving it.
When It Works: Nutrafol, K18, Oddity Tech, and Charlotte Tilbury
Not all deals end in decline. A few—Nutrafol, K18, Oddity Tech, and Charlotte Tilbury—offer lessons in how founder alignment and strategic fit create long-term wins.
Nutrafol: A Rare Win For Strategic Integration
Unilever acquired a 67% stake in Nutrafol for ~$850 million in 2022, valuing the brand near $1 billion. Since then, Nutrafol’s turnover has more than doubled, making it Unilever’s second-largest brand in its Health & Wellbeing division (Unilever).
Post-acquisition highlights:
- Product expansion: Launched topicals and adult acne supplements (Glossy).
- Retail growth: Now at Sephora; 80% of DTC revenue is from repeat customers (Unilever).
- Leadership: CMO Cindy Gustafson became CEO in 2025. Founder Giorgos Tsetis now serves as Chairman and strategic advisor to Unilever (Axios).
K18: Flexing Defensible Biotechnology
Haircare brand K18 officially launched in 2020 with a unique peptide, K18Peptide™, designed to repair hair damage at a molecular level. This biotechnology-driven approach set K18 apart in the haircare market, offering scientifically backed solutions that resonated with both professionals and consumers. Additionally, it successfully penetrated professional salons and secured retail partnerships, including distribution through Sephora. Its established distribution network provided a broad customer base.
Oddity Tech: Leading Like A True Tech Company
Oddity Tech, the parent company of Il Makiage and SpoiledChild, has taken a radically different approach to beauty brand building. Rather than selling to a conglomerate, Oddity built its own vertically integrated infrastructure that fuses product development, data science, and customer acquisition under one roof.
The company operates more like a consumer tech company than a traditional beauty house. Its proprietary technology platform powers everything from AI-based shade matching and diagnostic quizzes to digital ads and supply chain logistics. This tech-first foundation gives Oddity full control over customer experience, personalization, fulfillment, and real-time data feedback loops.
In 2023, Oddity went public, highlighting just how powerful its model has become. The company reported over 40% EBITDA margins, rapid revenue growth, and high repeat purchase rates—all while maintaining control over both brand voice and operational efficiency.
By keeping everything in-house, Oddity has scaled quickly without compromising its positioning or relying on retail partnerships. It’s a rare example of a beauty company built for the modern consumer economy—with agility, defensibility, and digital-native infrastructure baked in from day one.
The takeaway? Oddity shows that beauty brands don’t have to follow the traditional playbook to scale—and that in some cases, not being acquired may be the best way to preserve innovation and brand equity.
Charlotte Tilbury: Founder-Led and Flourishing
Charlotte Tilbury—the woman, now officially titled Lady Charlotte Tilbury, retains a minority stake in the company and continues to collaborate with Puig on the brand’s creative and strategic direction. Puig has extended its partnership and is set to assume full ownership by 2031, taking a gradual, phased approach rather than an abrupt takeover.
Tilbury’s legacy helped lay the foundation for the brand’s continued success. A former beauty editor at Vogue UK and one of the most influential makeup artists in the world, she built her career from the ground up—earning the trust of the fashion and beauty industries while cultivating a high-profile client list that includes Princess Diana, Meghan Markle, Amal Clooney, Kim Kardashian, and countless celebrities and supermodels.
Her name carries both creative authority and commercial prestige—two assets that remain front and center in the brand’s global positioning.
The takeaway? Charlotte Tilbury is a case study in what happens when an acquirer supports, rather than sidelines, the original founder and vision. It’s proof that founder-led beauty brands can thrive under corporate ownership—when the founder is allowed to lead.
Brands like Nutrafol, Oddity, and Tilbury succeed when acquirers preserve founder vision, not erase it.
The Future: Fewer Hype Deals, More Strategic Stewardship
The beauty industry doesn’t need more headline deals. It needs better post-acquisition stewardship.
If you buy a brand for its soul—and strip it for parts—the value dies with it.
“If you can’t scale a brand without smothering it, maybe you were never the right buyer to begin with.”
