CVC Capital Partners is exploring a potential sale of personal care platform Arthea, the owner of brands including Dr Teal’s, in a transaction that could value the business at around $2bn, according to a report Reuters citing unnamed people familiar with the matter.
The private equity firm is understood to have appointed Moelis and William Blair to advise on a possible disposal of the privately held company, formerly known as PDC Brands. Discussions are at an early stage and may not result in a transaction.
CVC acquired PDC from Yellow Wood Partners for $1.43bn in 2017. The business rebranded as Arthea last month, adopting a name intended to reflect its focus on personal care and wellbeing.
Founded in 1981 and headquartered in White Plains, New York, Arthea owns a portfolio spanning bath and body, fragrance and hair care. Its brands include Dr Teal’s, Bodycology, Body Fantasies, BOD Man and Cantu, with products distributed across more than 80 countries.
The company has also been pursuing new growth opportunities. Last month, alongside its rebrand, Arthea unveiled Sunryz, a body care brand targeting the tween market.
A sale would represent a potentially significant realisation for CVC as private equity investors continue to seek exits from consumer-focused assets. The personal care sector has seen a series of sizeable transactions this year, including L’Oréal’s $4.7bn acquisition of Kering’s beauty division and Henkel’s $1.4bn purchase of hair care brand Olaplex.
