Allbeauty and Fragrance Direct have been acquired by Maximo Group to create one of the largest direct to consumer groups for health and beauty products in the UK.
Maximo Group, a joint venture between the owners of allbeauty, private investors and the Guernsey Investment Fund, was formed specifically to fund the acquisitions, and the success of allbeauty and Fragrance Direct gives it a year one combined turnover of £200 million. The respective senior management teams will remain in place and allbeauty and Fragrance Direct will continue to trade as separate brands, maintaining their existing supplier relationships and agreements.
“We are bringing together two leading direct-to-consumer businesses, both with proven track records of growth and profitability. The brands have strong synergies in terms of customer base and brand offering, whilst also presenting opportunities for growth and differentiation within this dynamic market,’ said a spokesperson for Maximo Group.
“This is truly an exciting time for staff and shareholders alike and a great investment for Guernsey. We expect to be increasing the Guernsey-based team to facilitate growth and are already looking for larger office premises.”
The Guernsey Investment Fund has been a minority shareholder in allbeauty for some time and has supported the owners to embark on an expansion plan through acquisition. Fragrance Direct was identified as a company with a similar culture and after a period of discussion it became clear that combining both would provide a stronger proposition for its customers, suppliers and staff.
The existing shareholders have been joined by a number of new investors who believe in the future of the direct-to-consumer model and the growth of the group. As a strong indication of its belief, the Guernsey Investment Fund has made a further significant investment.
According to GlobalData, the UK health and beauty spend is forecast to rise by 8.8% over the next three years, equating to an additional £2bn.
Ecommerce accounted for 41% of total prestige beauty sales, including skincare, body care, make-up, fragrance and men’s grooming from January 2020 to the end of October 2020, compared to 21% of total beauty sales in the same period in 2019.
“We are extremely excited about the future of online beauty retail, which has shown an incredible growth over the last 12 months whilst presenting clear opportunities for increased market penetration in specific sectors. Whilst growth has been in part driven by the Covid situation, we believe that customers’ buying behaviour will continue to favour online shopping.
“We are looking forward to what the future will bring” said the Maximo Group spokesperson.
