Two contract beauty manufacturers are joining forces, with SV Labs Corporation acquiring Sigan Industries Group Inc.
Financial terms of the deal were not disclosed.
The combined entity will be led by SV Labs chief executive officer Graham Orriss, who said in a statement: “This partnership will enable us to offer expanded innovation and manufacturing capabilities to our customer base while still delivering the concierge-level customer service model that both companies are known for.”
Santa Cruz, Calif.-based SV Labs (previously Smith & Vandiver Corp.) is backed by San Francisco Equity Partners, which also invested in color cosmetics brand Jane Iredale and counts Method and Japonesque among its previous beauty and personal care investments.
“SV Labs is the ideal partner to support Sigan Industries’ continued growth, given our shared values of operational excellence and customer service,” said Dean Gangbar, cofounder of Toronto-based Sigan Industries in a statement. “I am confident that our partnership with SV Labs will significantly enhance the value that we deliver to our customers.”
With this acquisition, SV Labs now operates four production facilities offering product development and manufacturing services in skin, hair and body care, and over-the-counter products. The company has long been known for developing natural beauty products, including bath salts, bath bombs and CBD skin care offerings.
As demand for product development services has soared in recent years, so has M&A activity in the space. In 2022, San Francisco-based investment firm Knox Lane acquired a majority stake in premium beauty products formulator and manufacturer Elevation Labs for an undisclosed amount, and in April of this year, Elevation Labs acquired Boomerang Labs — another beauty and personal care formulator and manufacturer.
Elsewhere, TruArc Partners, a private equity firm focused on the middle-market, last year invested in personal care formulator and manufacturer, Trademark Cosmetics.
“The dynamics in the beauty and personal care markets are attractive for a focused and scaled contract development and manufacturing organization like SV labs, which can serve brands as both an innovation partner and a high-quality, efficient manufacturing partner,” added Scott Potter, managing partner at San Francisco Equity Partners.
