$630 Million! American Skincare Brand Hero Cosmetics Was Acquired
- Chaileedo Press
- Sep 8, 2022
- 2 min read
Updated: Sep 9, 2022
Recently, Church & Dwight, a leading US personal care manufacturer, announced the acquisition of Hero Cosmetics, a US skincare brand specializing in acne-prone skin for $630 million.
Hero Cosmetics, founded in 2017, is an American skincare brand whose well-known products are hydrocolloid acne patches - Mighty Patch. With about 70% of customers starting to use the brand through Mighty Patch, which currently includes the original night patch, nose, full face, and invisible day patch, prices are from $12.99 to $32. In addition, the brand has acne repair cream, acne skin sunscreen, cleanser, cleansing spray, body wash, body scrub, and other multi-category products.
Hero Cosmetics reportedly achieved 300% growth in 2020 only. Sales revenue of approximately $100 million in 2021 and net sales of $115 million for the 12 months ended June 30, 2022, and is expected to obtain $140 million in sales in 2022. Its products are currently available in about 8,000 stores in the US, including retailers such as Target, Ulta Beauty, CVS Pharmacy, Bloomingdale's, Kohl's, Urban Outfitters, Neiman Marcus, and its online stores.
Hero Cosmetics currently sells skincare products on the brand's official website as well as on Amazon and Target. It has not entered the Chinese market yet, and is only available in some of the reseller stores on Taobao and other platforms, and can also be searched for on Xiaohongshu and other recommendation platforms for sunscreen, acne patches, and other products.
The acquirer of this transaction, Church & Dwight, is a well-known US manufacturer of home care and personal care products, founded in 1846, started with the production and sale of baking soda, and now the products have been extended to clothing care, home care, personal care, and other categories, with Arm & Hammer, OxiClean, Batiste, Viviscal, Nair, and other leading brands.
The transaction is also Church & Dwight's first acquisition of the year, having bought alcohol-free mouthwash brand TheraBreath for $580 million last year, and after the acquisition, Hero Cosmetics founder Ju Rhyu will continue to serve as the brand's chief operating officer and chief design officer.
Commenting on the acquisition, Matthew T. Farrell, Church & Dwight Chief Executive Officer, said,"The Mighty Patch brand is efficacious and has a strong position in a growing category. The brand skews towards younger consumers and consistently has a high level of brand loyalty and repeat purchase.”
Rhyu also said she hopes to use Church & Dwight's resources to help Hero Cosmetics accelerate growth plans such as expansion in the US and internationally.
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