Dive Brief:
- American Exchange Company has acquired beauty skin care brand Indie Lee, according to a press release this week.
- The acquisition marks a “strategic milestone” for American Exchange Group as it continues to build out its presence in the beauty space. In 2023, the company acquired beauty and personal care brands NatureWell, Orlando Pita Play, Txtur and Found Active.
- Through the deal, Indie Lee will have the opportunity for distribution expansion through American Exchange’s retailer portfolio, per the announcement.
Dive Insight:
The acquisition of Indie Lee builds on American Exchange Group’s strategy of buying brands to strengthen its position across several sectors.
"Beauty and personal care are among the fastest-growing categories, and with this acquisition, AXNY Group is poised to become a dominant leader in the space. We see a tremendous opportunity to develop Indie Lee's direct-to-consumer business by leveraging American Exchange Group's expertise and resources,” Alen Mamrout, CEO of American Exchange Group, said in a statement. “We plan to expand Indie Lee products beyond skincare, both in-house and via licensing, and explore diffusion brands through licensing and brand expansion."
American Exchange has invested in other categories as part of its overall business strategy to focus “on identifying brands, partnerships, and opportunities that provide value to a diverse range of consumers,” per the company. It acquired footwear brand Aerosoles in 2022 and added Island Surf Company to its mix of shoe brands earlier this month. As part of the latter deal, American Exchange will integrate Island Surf into its White Mountain Footwear brand, which it acquired in 2023.
The beauty space has been one of retail’s hot categories for M&A activity in recent years. Stripes Beauty, the wellness lifestyle brand founded by actress and women’s health advocate Naomi Watts in 2022, was acquired last month by private equity firm L Catterton. Other deals in the space have included West Lane Capital Partners’ acquisition of Mented Cosmetics in April, Uoma Beauty’s sale to private equity firm MacArthur Beauty in December of last year, and E.l.f. Beauty’s acquisition of Naturium for $355 million in August of last year.
