Quirky beauty e-tailer, Drunk Elephant is reportedly looking for a buyer, as Founder Tiffany Masterson says the brand is keeping its options open.
“Skin is skin, regardless of age”, is Masterson’s famous line, but as she looks to put her beloved brand on the market, she could be handing her clean skincare product range and associated brand over to new owners.
Drunk Elephant has reportedly been fending off eager buyers since 2016 when The Esteee Lauder Companies expressed interest in the brand. At the time, the business was estimated to be generating approximately $25 million in retail sales. This figure had increased to an estimated $150 million by the end of 2018.
First reported by The Wall Street Journal, analysts believe that if Drunk Elephant was to find a buyer, it could fetch upwards of US$ 1 billion.
“We have signed with bankers to explore the possibility of a sale”, Masterson has said, claiming she doesn’t know when, and if a sale will go through, but that she is interested in learning more.
To explore its options, Drunk Elephant is working with investment banks, Financo LLC and Moelis & Co. Founded in 2012, the brand entered its biggest period of growth two years ago, when it secured an investment from VMG and hired former Urban Decay and L’Oreal executive, Tim Warner to take the helm as CEO.
Speaking to Power Retail in late 2018, Masterson explained her love for the Drunk Elephant brand that’s been a big part of her life for the last six years. In the last year alone she says she has increased mobile sessions by 157 percent, with the number of customer requests coming through its system almost doubling in the same period.
“I love that our website feels like a reflection of who we are,” she said when complimented for the quirky web design and creative branding the business is known for. “Like us, it’s fun to navigate, it has a serious message and philosophy, but it doesn’t take itself too seriously,” she explained.
Sephora has been floated as a potential buyer, as the beauty retailer is currently the exclusive supplier of Drunk Elephant in the US and Canada, outside of the brand’s own e-commerce platform.