Beauty Store Business

MAY 2019

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6 May 2019 | beautystorebusiness.com Industry News Armando Sanchez The Elite Eye Mask TO ORDER: lashsavers.com 800.690.1654 DISTRIBUTOR PRICING FREE SHIPPING AVAILABLE Extends the life of lash extensions and strip lashes Protects eyes and lashes during sleep, massage and travel Washable One size fi ts all TM Introducing LashSavers Eye Mask JD BEAUTY AND GOODY MERGE JD Beauty, the parent company of WetBrush, Bio Ionic and Ouidad, announced in March that it will merge with Goody Products, an iconic manufacturer of hairstyling tools and accessories. ACON Investments, the private equity firm that purchased Goody from Newell Brands in August 2018, has signed a definitive agreement to buy a controlling interest in JD Beauty from Topspin Partners, a consumer-focused private equity firm. The merger of JD Beauty's well-known haircare brands with Goody Products will create a multi-brand, diversified, haircare accessory, liquid and tool company uniquely poised to serve both the professional and consumer beauty industries. Jeffrey Davidson, CEO of JD Beauty, will become CEO of the combined entities upon closing. "This is an exciting day for us and the beauty industry. Together, we can better serve both the professional and consumer beauty industries with game-changing product development capabilities, dynamic marketing initiatives and best-in-class sales support and customer service. This transformational acquisition will combine one of the fastest-growing companies in the beauty industry with one of the country's most iconic and trusted beauty brands, Goody. Over the course of our partnership with Topspin Partners, we grew significantly through the launch of several new product lines, expanded distribution capabilities and the completion of strategic add-on acquisitions. We strongly believe this growth can continue through a partnership with ACON and Goody, which will provide us with access to additional resources to build and accelerate our platform," Davidson said. Ken Brotman, founding and managing partner at ACON commented, "The combination of JD Beauty and Goody creates a formidable supplier within the industry. We look forward to working with Jeffrey and the entire JD Beauty and Goody teams to continue a growth trajectory for the integrated company." Leigh Randall, managing partner at Topspin Partners added, "JD Beauty is an exceptional and innovative platform that has redefined the haircare industry. Over the past three years, Jeffrey and the team have grown the company from its single product beginnings in detangling brushes into a multi-category, multi-channel platform. We are confident that JD Beauty will continue its growth under ACON, and we wish the JD Beauty team the very best in their next chapter." LEGISLATION INTRODUCED IN CALIFORNIA TO BAN COSMETICS WITH HARMFUL CHEMICALS In March, California legislators introduced a bill that would ban cosmetics containing chemicals linked to cancer and reproductive harm. Assembly Bill 495, authored by Assemblymembers Al Muratsuchi (D-Torrance) and Buffy Wicks (D-Oakland), states that cosmetics products containing toxic chemicals such as mercury, lead, phthalates, formaldehyde, triclosan and the fluorinated compounds known as PFAS are "adulterated cosmetics" that may not be sold in California. The legislation is sponsored by two consumer advocacy groups: Environmental Working Group (EWG) and California Public Interest Research Group (CALPIRG). "Many cosmetics companies are already reformulating their products to exclude these dangerous chemicals, but it's important to establish a floor other companies can't drop below," said EWG president Ken Cook. "No cosmetics CEO would make a product with a cancer-causing chemical ingredient that could not be sold in California, the fifth-largest economy in the world." Although two bills have been introduced in Congress to update the Food, Drug and Cosmetic Act of 1938, no legislation has been passed. Jeff rey Davidson

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