Arrowpoint Advisory and Rothschild & Co Consumer team has advised Palamon Capital Partners and the other shareholders of Feelunique Holding Limited on its signed agreement to be acquired by Sephora SAS, the world’s renowned omnichannel Prestige Beauty retailer owned by LVMH Moët Hennessy Louis Vuitton, the world’s leading luxury products group.
The transaction is expected to complete later in the second half of 2021 following customary regulatory clearance. The terms of the sale were not disclosed.
Headquartered in London, Feelunique is a leading online retailer of prestige beauty products in the UK, offering its 1.3 million active customers an unparalleled range of 35,000 products from more than 800 established luxury, niche, independent and challenger brands. Palamon acquired Feelunique from its founders, having identified the attractive growth dynamics and defendable nature of the online beauty category, which is predicated on developing trusted relationships with the brand owners. Featured brands include Chanel, Clinique, Estée Lauder, Aveda, Tom Ford, NARS, Armani, Dermalogica, Charlotte Tilbury, Anastasia, Huda Beauty and Clarins.
Since acquisition, Palamon has worked with the Company to enhance its market position, through a programme of infrastructure building and growth, which quadrupled the size of the business. This has involved expanding the brand offering, relocating the distribution centre to the UK to enhance customer experience, opening international markets, investing into the technology platform to enrich customer experience, and launching UK’s emerging beauty marketplace platform. Palamon appointed Sarah Miles, former Head of Apparel for Amazon, as CEO in 2019 to lead Feelunique’s next phase of growth, becoming the online destination for prestige beauty and the hub for connecting customers and brands.
Sarah Miles, CEO of Feelunique, said: “We are delighted to join forces with Sephora, whose Prestige positioning is the perfect fit for our prestige brand offering. With the support of Palamon and its co-investors we have created a renowned online player in UK beauty at the forefront of a significant market opportunity. With the new strategic backing and resources of a global retail group we are truly excited about the prospects for Feelunique to accelerate its growth.”
Ali Rahmatollahi, Partner at Palamon commented: “We chose the Arrowpoint Advisory and Rothschild & Co consumer team due to their sector expertise and track record of delivering successful results for all stakeholders” with Ia Bergman, Principal at Palamon, adding "Throughout the process they did an excellent job, showing a great degree of ownership and dedication and ultimately delivering the optimum strategic buyer for Feelunique – we look forward to working with them again in the future.”
Simon Cope-Thompson, Managing Director, Arrowpoint Advisory, concluded: “A sale to Sephora is testament to the outstanding business that has been created under Palamon’s ownership. We are delighted to have been able to help the shareholders find an excellent partner for the next stage of Feelunique’s journey and look forward to seeing the company continue its impressive growth trajectory under new ownership.”