PARIS – The French natural cosmetics company Universal Beauty Group, known for its VÃ©gÃ©talement Provence brand aimed at hairdressing salons and beauty professionals, has raised 6 million euros from a group of investors led by Connect Pro.
Connect Pro, an investment fund based in Marseille, France, was supported in the tour, signed early Thursday afternoon, by private equity funds BNP Paribas DÃ©veloppement, Ãtoile Capital and the RÃ©gion Sud Investissement fund. .
The new capital will help Universal Beauty Group accelerate its development in the booming natural beauty sector, which is expected to experience 6-9% annual growth between 2021 and 2027.
“With the support of its teams, its training center and its logistics base, [Universal Beauty Group] is ready to become a major player in alternative cosmetics and beauty, âthe group said in a statement.
Part of the company’s strategy is to expand its product range and open a new concept store in Paris in spring 2022. A significant investment must be made in the digital development and e-commerce of the group, and a another focus will be on consolidating its international expansion.
Following the transaction, the founders of Universal Beauty Group, Vincent Faraco and Jean-Marc Delabre, will remain its main shareholders and will continue to lead the company.
Universal Beauty Group raised â¬ 1.5 million in capital from the private equity firm Audacia in 2017. This investment enabled VÃ©gÃ©talement Provence to double its number of storage units while launching into new categories , such as skin care, with lines like Hair Spa and Skin Spa. The brand has launched a collection for ethnic hair, called TSA, and the professional line of Cataplasm herbal powder hair dye.
Since 2017, Universal Beauty Group has also opened three own-brand concept salons alongside around twenty independent concept salons labeled VÃ©gÃ©talement Provence. The latest independent show debuted in Lyon, France, in October.
VÃ©gÃ©talement Provence products have been praised by hairdressers such as Charlie Le Mindu, Ben Mignot and Henry Olivier.
Long-time hairstylist Delabre and Marketing Manager Faraco founded Universal Beauty in 2008. Initially, she produced and distributed hair care products for other companies. They then launched in 2011 their own natural hair care products under the VÃ©gÃ©talement Provence label, to be more respectful of the environment while respecting the health of customers and hairdressers.
Universal Beauty Group has more than 275 references in its portfolio. The professional range of VÃ©gÃ©talement Provence includes more than 130 coloring references, including products using oxidation and others based on plants.
One hundred and forty SKUs are in consumer hair and skin care. The group said its product resale rate was well over 20 percent, compared to the usual 5 percent resale rate at trade shows in France. This demonstrates that the brand is rapidly developing from a business-to-business model to also include a business-to-consumer reach.
Universal Beauty Group, based in Saint-RÃ©my-de-Provence, France, has around twenty employees. It sold 170,000 products through more than 500 points of sale and its e-shop in 2020.
70% of the group’s sales are made in mainland France; 15% in Reunion, the French island, and 15% abroad.
In 2021, the company expects to generate revenue of â¬ 4 million and have earnings before interest, taxes, depreciation and amortization margin of around 20%.
Universal Beauty Group started looking for a new investor in May, which it says has sparked strong interest at home and abroad from hair and beauty companies, as well as private equity. and family offices.
Richard Morgan Advisory and the law firm Volt AssociÃ©s advised Universal Beauty Group. Nova Partners advised the investors and Deloitte Finance performed the financial audit.
For more information, see:
EXCLUSIVE: Universal Beauty Group raises â¬ 1.5 million from Audacia
Behind the success of Olaplex and Prestige hair care trends driving the industry
P&G launches premium haircare with Jen Atkin deal