Huda Beauty divests fragrance brand Kayali to General Atlantic
Deal News | Feb 17, 2025 | Zawya
Huda Beauty, a prominent Dubai-based cosmetics firm, is selling its fragrance brand Kayali to US-based growth equity firm General Atlantic. This transaction, for which the financial terms remain undisclosed, results in a partnership with Mona Kattan, Huda Kattan's sister, continuing as CEO and co-owner of Kayali alongside General Atlantic. The sale enables Huda Beauty to recover its ownership from a previous minority stake investment by private equity firm TSG Consumer Partners, which valued the company at $1.2 billion in 2017. Mona Kattan will steer Kayali independently, separate from Huda Beauty operations. The role of financial and legal advisors in the transaction was filled by firms including Goldman Sachs International, Gibson Dunn, Skadden, Arps, Slate, Meagher & Flom, Raymond James, and Latham & Watkins, highlighting the professional network involved. The GCC cosmetics market is forecasted to reach $14.4 billion by 2033, with a CAGR of 6% from 2024, reflecting significant growth potential in this region.
Sectors
- Cosmetics and Fragrances
- Private Equity and Investment
- Financial Advisory
Geography
- United Arab Emirates – Huda Beauty and Kayali are based in Dubai, making UAE a key geographical focus.
- United States – General Atlantic, the acquiring firm, is based in the US, emphasizing cross-border investment.
- Saudi Arabia – Mentioned in the context of the growing GCC cosmetics market and a recent IPO in the Saudi market.
Industry
- Cosmetics and Fragrances – This industry is relevant as the article discusses Huda Beauty selling its fragrance brand, Kayali.
- Private Equity and Investment – Involves General Atlantic's acquisition and partnership with Kayali, indicating investment activities.
- Financial Advisory – Various advisory firms played roles in the transaction, offering financial and legal support.
Financials
- $1.2 billion – Valuation of Huda Beauty following investment by TSG Consumer Partners in 2017.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Huda Beauty | Target company | Company | A Dubai-based cosmetics firm selling its fragrance brand, Kayali. |
| Kayali | Selling Company | Company | Fragrance brand owned by Huda Beauty being sold to General Atlantic. |
| General Atlantic | Bidding Company | Company | US growth equity firm acquiring Kayali. |
| Mona Kattan | CEO and Co-owner of Kayali | Person | Sister of Huda Kattan, continuing as CEO post-sale. |
| Goldman Sachs International | Financial Advisor | Company | Financial advisory firm for Huda Beauty. |
| Gibson Dunn | Legal Advisor | Company | Provided legal advice to Huda Beauty. |
| Skadden, Arps, Slate, Meagher & Flom | Legal Advisor | Company | Served as legal advisor to Mona Kattan. |
| Raymond James | Financial Advisor | Company | Financial advisory firm for General Atlantic. |
| Latham & Watkins | Legal Advisor | Company | Provided legal advice to General Atlantic. |
| TSG Consumer Partners | Private Equity Firm | Company | Previous minority stake investor in Huda Beauty. |