Advent International Acquires Majority Stake in Skala Cosmetics

Skala Cosmetics manufactures high-quality, vegan and organic haircare products tailored to the Brazilian and Latin American markets. Founded in 1986, it has grown to become the 4th biggest haircare brand in Brazil today.

Specifically, Skala leads the Brazilian market in hair masks. It has developed a suite of products for various hair types and needs including hydration, repair, anti-frizz, coloured hair and more. Skala also invests significantly in R&D and testing to develop plant-based formulas without parabens, petrolatum, mineral oils or other harsh chemicals.

These attributes have enabled Skala to achieve a 45% household penetration rate in Brazil while also expanding exports to over 40 countries globally. The brand has delivered over 30% average annual growth in the last few years both in Brazil and key markets like the US. This impressive performance piqued the interest of Advent International.

Advent Brings New Leadership Focused on Scaled Growth

To lead its next chapter, Skala is appointing Cyro Gazola as CEO under Advent’s majority investment. Gazola brings over 20 years of experience leading consumer brands and retail companies in Brazil. For example, he was formerly CEO of the major bicycle manufacturer Caloi.

Gazola intends to accelerate Skala’s trajectory by boosting production capacity via a new Brazilian facility scheduled to open in 2025. This will enable 50% more output to meet fast-rising domestic and international demand. The CEO also aims to grow Skala’s retailer network by 25% in Brazil and add 30 more country-level distributors abroad – focusing especially on Latin America, North America and Europe.

Additionally, Gazola shared plans to expand Skala’s marketing campaigns to raise awareness of its brand values and vegan, eco-friendly beauty products. These initiatives will further stimulate sales growth while attracting new consumers to the brand and category.

By executing these commercial goals in a disciplined way, Gazola aims for Skala to reach BRL 500 million in sales by 2026. The brand has effectively doubled revenues every four years historically, trends the CEO intends to continue going forward with Advent’s support.

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Advent Brings Relevant Experience Supporting Beauty Brand Growth

As a PE firm, Advent has previously invested in high-potential beauty brands including Olaplex, Orveon and Parfums de Marly. It helped these companies boost production scales, expand globally and accelerate innovation pipelines to ultimately sell for strong exits.

Similarly, the firm plans to leverage its consumer/retail experience and global network to energize Skala’s business domestically and internationally. With Skala’s products aligned to global natural beauty trends, Brazil’s uniquely biodiverse ingredients supply, and Advent’s growth support, the brand is primed for its next level of success.