Skala and Lola From Rio Form Brazil's Beauty Powerhouse
Deal News | Jun 06, 2025 | Advent International
Two leading Brazilian beauty brands, Skala and Lola From Rio, have announced a strategic merger to create one of the largest beauty groups in Brazil. The new entity boasts a combined revenue of approximately R$2 billion and international sales in over 80 countries. The merger, advised by IGC Partners and involving legal counsel from Mattos Filho and Lobo de Rizzo Advogados, aims to leverage the complementary strengths of both brands. Skala, a market leader in hair treatment creams in Brazil, has been growing at a substantial rate domestically and internationally, with significant expansion in the United States. Lola From Rio, known for its innovative vegan products, has seen its revenue multiply sixfold in recent years. Advent International, a global private equity giant, is providing undisclosed investment from its US$2 billion Latin America fund to fuel growth. The founders of both companies will join the new group's board of directors, and the merger awaits approval from local antitrust regulators.
Sectors
- Beauty and Personal Care
- Private Equity
Geography
- Brazil – Both Skala and Lola From Rio are based in Brazil and are expanding their operations in the country.
- United States – Skala has a notable market presence and distribution centers in the United States as part of its international growth strategy.
Industry
- Beauty and Personal Care – The article involves companies operating in the beauty industry, focusing on hair care, body care, and home products.
- Private Equity – Advent International, a leading global private equity firm, is a key participant in supporting the merger of two Brazilian beauty brands.
Financials
- R$2 billion – Combined revenue of Skala and Lola From Rio.
- R$150 million – Investment by Skala to build a new factory and distribution center in Brazil.
- US$2 billion – The size of Advent International's Latin America fund, which is investing in the Skala-Lola merger.
Participants
| Name | Role | Type | Description |
|---|---|---|---|
| Skala | Target Company | Company | A leading Brazilian brand in hair care products, known for its inclusive and affordable range. |
| Lola From Rio | Selling Company | Company | An innovative Brazilian beauty brand focusing on vegan and bold products. |
| Advent International | Private Equity Firm | Company | A global private equity firm investing in the merged entity from its Latin America fund. |
| IGC Partners | Financial Advisor | Company | Provided financial advisory services for the merger of Skala and Lola From Rio. |
| Mattos Filho | Legal Counsel for Lola | Company | Provided legal advisory services for Lola From Rio in the merger. |
| Lobo de Rizzo Advogados | Legal Counsel for Skala | Company | Provided legal advisory services for Skala in the merger. |