Dubai-based Huda Beauty is exploring the sale of its fragrance division, Kayali, as part of strategic restructuring efforts. The move follows significant changes within the company and aims to enhance operational focus.
Sale Exploration and Advisory
Huda Beauty has engaged Goldman Sachs Group Inc. to advise on the potential sale of its Kayali fragrance unit. The decision to sell comes as Huda Beauty, known for its substantial social media presence, seeks to streamline its operations and provide its fragrance and cosmetics brands with the opportunity to pursue independent growth.
Company Restructuring
The potential sale of Kayali is part of a broader series of structural changes at Huda Beauty. Earlier this year, founder Huda Kattan announced the closure of the skincare/make-up hybrid brand Glowish and a reduction in the company’s product lineup. Additionally, Huda Beauty introduced a new logo and packaging design in July, signaling a refreshed brand direction.
Impact of the Sale
The sale of Kayali would allow Huda Kattan to buy out minority shareholders, including TSG Consumer Partners, a US private equity firm that acquired a stake in Huda Beauty. This move reflects Kattan’s intention to consolidate control and focus on the company’s core areas.
Company Profile
Founded in 2013 by Huda Kattan, Huda Beauty has grown rapidly from its origins in false eyelashes to encompass a wide range of makeup and skincare products. The company, which has previously been valued at around $1 billion, is renowned for its strong social media performance and influence in the beauty industry. Huda Beauty also launched HB Investments in 2017, marking its expansion into private equity.
Comment Request
Huda Beauty has not yet commented on the matter, and further details about the potential sale are awaited.
