Ares Management Corporation (NYSE:ARES) stated that funds managed by its credit platform served as the administrative agent for $1.6 billion in debt financing in connection with the merger of Suave Brands Company and Elida Beauty, Yellow Wood Partners portfolio companies.The combined company will now be named Evermark and comprises personal healthcare brands such as Suave, Pond's, Caress, St. Ives, Noxzema and TIGI, an announcement made by Ares stated."We are pleased to lead the financing for the creation o ...

Core Viewpoint - Ares Management Corporation has facilitated $1.6 billion in debt financing to support the merger of Suave Brands Company and Elida Beauty, resulting in the formation of Evermark, LLC, a new leading global platform for personal care brands [1][3]. Group 1: Ares Management Corporation - Ares Management Corporation is a prominent global alternative investment manager with over $595 billion in assets under management as of September 30, 2025, offering investment solutions across various asset classes including credit, real estate, private equity, and infrastructure [4]. - The company emphasizes its commitment to providing flexible capital that supports businesses and creates value for investors and communities [4]. Group 2: Evermark, LLC - Evermark, LLC is established as a personal care platform that combines the legacy of Suave Brands and Elida Beauty, featuring a portfolio of well-known brands such as Suave, ChapStick, Q-tips, and others [2][5]. - The company aims to drive sustainable growth through brand-focused leadership, operational discipline, and long-term investment strategies [5]. Group 3: Yellow Wood Partners - Yellow Wood Partners is a consumer-focused private equity firm that invests in both founder-owned and legacy consumer brands, managing over 40 household global brands [6]. - The firm employs a unique investment and operating strategy called Consumer Operating DNA® to unlock brand value and facilitate growth [6].

Core Views - The article discusses the contrasting strategies of two major beauty groups, L'Oréal and Unilever, highlighting L'Oréal's aggressive acquisition approach and Unilever's focus on divesting non-core assets [2][8]. Group 1: L'Oréal's Acquisition Strategy - L'Oréal announced the acquisition of an additional 10% stake in Galderma, increasing its ownership from 10% to 20%, with plans to explore further scientific research collaborations [1][6]. - The acquisition is part of L'Oréal's ambition to penetrate the rapidly growing medical aesthetics market, alongside its investments in high-end and clean beauty segments [6][8]. - In October, L'Oréal made a significant investment of €4 billion to acquire beauty licenses from Kering Group, indicating a strong recovery in its performance, particularly in the North Asia region [6][7]. Group 2: Unilever's Divestment Strategy - Unilever is undergoing a restructuring process, focusing on core businesses by divesting over 20 non-core beauty and personal care brands, including the planned spin-off of its ice cream business [1][7]. - The CEO of Unilever emphasized that the spin-off aims to create a more streamlined company focused on higher profit margins in beauty and personal care sectors [7][8]. - Unilever's recent quarterly results showed improvement in sales growth after excluding the ice cream business, indicating a positive trend in its core operations [7][8]. Group 3: Industry Trends and Brand Matrix - The contrasting strategies of L'Oréal and Unilever reflect a broader industry trend where companies are either expanding their brand portfolios or optimizing them by shedding non-core assets [8][9]. - The ideal brand matrix should exhibit strategic synergy, growth gradient, and profit orientation, allowing companies to withstand market fluctuations [10]. - Other beauty brands, including Estée Lauder, are also reviewing their brand portfolios, indicating a shift towards optimizing brand performance and profitability [9].