Suave Brands Company, a portfolio company of Boston-based private equity investment firm Yellow Wood Partners (Yellow Wood), is to acquire the ChapStick brand from global consumer health firm Haleon, in a deal valued at around $510m.
The transaction, which is expected to close in the first half of 2024, subject to the completion of customary closing and regulatory approvals, comprises a cash payment of $430m and as well as a stake in the acquiring company, valued at around $80m.
ChapStick invented the lip care category in the 1880s with the launch of a now-iconic lip balm that made ChapStick a household name. Today, ChapStick is synonymous with the product category – it is the number one brand by volume and has over 80% brand awareness.
Suave Brands Company is a value-focused personal care brand that sells products across hair, body, skin and antiperspirant deodorant segments.
Yellow Wood’s portfolio of consumer brands includes global foot care brands Dr Scholl’s and Scholl International; Beacon Wellness Brands, led by its anchor brand PlusOne, a sexual wellness device brand; beauty brands Real Techniques and EcoTools; skincare brand Byoma, and self-tanning brands Isle of Paradise, Tanologist and TanLuxe.
In December, Yellow Wood announced the pending acquisition of the Elida Beauty portfolio of brands from Unilever, which includes Q-Tips, Caress, TiGi, Ponds, St Ives, and Noxzema, as well as European brands including Brut, Impulse, Monsavon, and Timotei.
