Beauty & Care M&A: 174 Deals and a Clear Bet on Differentiation

PE investors return in force, science-backed innovation drives consolidation, and integrated manufacturing platforms reshape the deal landscape.

Beauty & Care M&A 2026 entered H1 on strong footing. With 174 announced transactions – up from 143 in H1 2025, a 22% year-on-year increase – the sector recorded its busiest first half in years. Declining valuation multiples helped narrow the gap between buyers’ and sellers’ expectations, encouraging financial sponsors to return while established beauty groups pursued external growth.

But the recovery is about more than volume. Buyers are increasingly targeting businesses positioned at the intersection of beauty, health and wellness, alongside companies offering proprietary ingredients, differentiated formulations and scalable manufacturing capabilities.

At MP Corporate Finance, we track M&A activity across the full Beauty & Care value chain – from ingredients and formulation to contract manufacturing, turnkey solutions, packaging and brands. Our Midyear Review 2026 explores the key investment themes, valuation trends and strategic shifts shaping the sector.

Financial investors return – and they are not just buying brands

The defining development of Beauty & Care M&A in H1 2026 was the renewed appetite of private equity investors, who participated in almost half of all announced transactions.

Financial sponsors targeted both consumer brands and specialised manufacturing businesses, supported by softer valuations that made high-quality assets more accessible.

Advent International’s investment in premium fragrance brand Salt & Stone illustrates continued interest in differentiated consumer propositions. Meanwhile, 3i Group acquired a 51% stake in Laboratoire Nutergia, strengthening its exposure to nutrition brands.

Financial sponsor activity also extended to manufacturing, with Ampersand Management investing in Purna Pharmaceutical, a provider of solid and powder CDMO services.

These transactions highlight a clear pattern: investors are seeking differentiated capabilities across the value chain, not just the next hot consumer label.

Superior science drives investment

Ingredients and formulation M&A activity doubled year-on-year in H1 2026, reflecting demand for scientific expertise, proprietary technologies and differentiated ingredient portfolios.

Blue chips are leading the race. Ingredion, Givaudan and Robertet continued to invest in differentiated ingredient capabilities across nutrition, beauty, flavours and fragrances.

Givaudan’s acquisition of Eurofragance strengthened its niche perfumery capabilities, while Solabia acquired Mibelle Biochemistry to expand its active ingredients portfolio. Hahm Partners acquired an 85% stake in Biobeautech, adding biotechnology ingredient capabilities.

The convergence of beauty, health and wellness is reinforcing this investment theme. As consumers increasingly prioritise healthy longevity and personalised wellbeing, businesses offering clinically supported formulations and specialised ingredients are becoming prime acquisition targets.

Europe remains the innovation powerhouse, with France and Spain particularly active in flavours, fragrances and botanicals, while Nordic businesses maintain expertise in Omega-3 and marine nutrition.

Capabilities command attention

Contract and private label manufacturing emerged as a consolidation hotspot in its own right, with PE-backed transactions almost tripling year-on-year.

Financial investors increasingly targeted manufacturers combining regulatory expertise, specialised production capabilities and established customer relationships. Fragrance, nutrition and dermo-cosmetics manufacturing were among the most active investment themes.

New Directions Aromatics’ acquisition of AFI, a business generating approximately €66m in revenue, illustrates the strategic value of custom fragrance creation. As brands seek differentiation, buyers are investing in manufacturers that can help create signature products – not simply fill bottles.

The trend towards integrated solutions also extended to turnkey and packaging businesses. Buyers increasingly prioritised partners combining product development, packaging, manufacturing and supply-chain capabilities rather than standalone production providers. The competitive advantage is shifting from production capacity to market responsiveness.

The merger of Cosmogen and Asquan created a larger turnkey supplier for premium beauty packaging, combining Asian sourcing capabilities with French cosmetics application expertise. The transaction marked Weinberg Capital Partners’ first inorganic growth play since investing in Cosmogen in late 2024.

Valuations tell different stories

The recovery in Beauty & Care M&A activity coincided with moderating valuation multiples. Median deal EV/EBITDA declined from 13.9x in Q3 2024 to 10.1x in Q2 2026, with Q1 2026 recording 10.6x.

Public-market valuations also reflected a softer environment. As of 30 June 2026, MP’s Beauty, Personal Care & Hygiene listed peer group traded at a median 10.6x LTM EV/EBITDA, compared with 11.6x one year earlier.

However, valuations varied significantly across the value chain. Ingredients and formulation businesses recorded a median 12.7x LTM EV/EBITDA, while brands traded at 12.4x. Contract and private label manufacturing businesses stood at 8.5x, compared with 7.9x for turnkey and packaging.

Importantly, these segments did not follow identical valuation trends. Contract and private label manufacturing increased from 7.8x to 8.5x year-on-year, while brands declined from 13.4x to 12.4x and turnkey and packaging from 9.5x to 7.9x. Ingredients and formulation held steady at 12.7x.

These figures represent listed peer group trading multiples rather than individual acquisition valuations.

Deep dive: Brands, brands, brands

Brands accounted for 110 of the 174 Beauty & Care M&A transactions announced in H1 2026, representing approximately 63% of total activity.

Both private equity and listed acquirers more than doubled their investment activity in brands compared with H1 2025, reflecting readiness to scout and invest in hot consumer brands, as softening multiples create headroom.

Haircare and nutrition attracted the strongest interest, driven by growing consumer demand for wellness-oriented products and further supported by the resurgence of long-hair trends across social media and celebrity culture. Hair-growth serums, scalp treatments, supplements and repair-focused formulations were prominent investment themes.

The headline transaction was Henkel’s £1bn acquisition of Olaplex, valued at 21.6x EV/EBITDA — among the highest multiples in Beauty & Care M&A so far in 2026. The deal illustrates how established beauty groups are seizing M&A to accelerate growth in high-performing categories.

Yet the deal is also emblematic of Olaplex’s fall from its approximately $15bn 2021 IPO valuation, which was followed by branding challenges when transitioning from professional salons to broader retail.

For acquirers, the transaction demonstrates both the strategic appeal of premium haircare and the importance of sustainable brand positioning.

Deep dive: Integrated manufacturing platforms gain strategic relevance

Manufacturing consolidation increasingly reflects demand for businesses offering comprehensive development and production services.

PTA Equity Partners’ acquisition of a 70% stake in COSBELLE illustrates the attractiveness of European contract cosmetics manufacturing platforms. Meanwhile, 1Q Health acquired EHF Group to expand its supplements manufacturing capabilities.

Both transactions demonstrate how investors are seeking specialised production expertise and opportunities to broaden service offerings.

The geographical distribution of transactions also highlights the international nature of consolidation. Europe and the Americas remained equally active in contract manufacturing M&A, reflecting demand for integrated capabilities across regions.

For business owners, specialised expertise and the ability to act as an end-to-end development partner can strengthen strategic positioning in an increasingly competitive market.

Outlook: Differentiation is the deal thesis

H1 2026 demonstrated renewed investor confidence, supported by private equity activity, strategic consolidation and moderating valuations.

Looking ahead, science-backed ingredients, wellness-oriented brands and integrated manufacturing platforms remain the investment themes that matter. Buyers are increasingly prioritising businesses offering proprietary capabilities, scalable operations and strong competitive positioning.

For owners considering strategic partnerships, growth investments or potential exits, demonstrating these characteristics will remain essential to attracting investor interest.

If you would like to discuss what the current M&A environment means for your business, we would be happy to share our perspective. Get in touch with MP Corporate Finance’s Beauty, Personal Care & Hygiene experts.