Kosas Cosmetics is said to have hired investment bank North Point to explore sale options, according to industry sources.
The Los Angeles-based makeup brand was founded by Sheena Zadeh-Daly in 2015 and was an early entrant in the clean cosmetics category. Its makeup-as-skin-care positioning has resonated with consumers, and it has become a staple at Sephora. Multiple products have achieved “hero” status, including Revealer Concealer, Wet Lip Oil Gloss and Plump + Juicy Vegan Collagen Spray-On Serum.
Kosas has attracted big-name investors since its inception, including VMG, Stripes Group, Beechwood Capital, Imaginary Ventures and Scooter Braun’s TQ Ventures. In addition to Sephora, key retailers include Mecca, SpaceNK and Credo. Net sales are thought to be in the $75 million range with that number expected to exceed $120 million this year.
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In 2021, Zadeh-Daly hired industry veteran Jean-Marc Plisson as chief executive officer. “When we got to about 40 people is when I realized I don’t know how to do this,” she said during a panel at the 2023 WWD Beauty CEO Summit. “What I do know how to do is build a brand. I’m an artist. I’m probably not the right person to go to to ask questions about supply chains.”
The reports come after a busy end-of-year M&A season in the beauty industry. In December, Unilever acquired the hot hair care brand K18, while Shiseido snapped up Dr. Dennis Gross Skin Care.
Overall, makeup has been a strong performer in the U.S. prestige beauty sector. The category ended the first half of 2023 as the fastest-growing category, according to Circana, with sales up 18 percent. Usage increased 3 percent, with Circana reporting it has surpassed pre-pandemic levels.
