Advent International, Tricia Glynn - A Beautiful Carveout at Orveon (S1.EP.07)
Dec 7, 2022
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Tricia Glynn, Managing Director at Advent International, shares insights from overseeing nearly $100 billion in assets. She details the intricate carve-out of beauty brands like Bare Minerals and Laura Mercier from Shiseido to form Orveon. The discussion highlights the complexities of due diligence, strategic planning, and the challenge of building brand heritage. Tricia also addresses the importance of adapting to modern consumer values, navigating hybrid work culture, and innovative strategies to reinvigorate brands and drive future growth.
Tricia Glynn highlighted the importance of a comprehensive value creation plan in successfully executing the carve-out of Orveon from Shiseido Americas.
Advent International focuses on optimizing brand identity and operations to align with modern consumer values like sustainability and inclusivity.
The firm's future strategy involves ongoing investments and potential mergers to foster growth and establish Orveon as a market-leading beauty company.
Deep dives
Advent International Overview
Advent International is a global private equity firm founded in 1984, focusing on growth-oriented investments across various sectors, including technology, healthcare, and consumer businesses. With approximately $100 billion in assets under management today, the firm has a robust presence with 15 offices worldwide. Advent has evolved its investment strategies over the years, incorporating both founder-backed high-growth investments and transformational deals, such as carve-outs. The firm emphasizes creating long-term value, ethical standards, and maintaining a balance in the lives of its team members.
Introduction to Orvion
Orvion, a collective of beauty brands formed in 2021 by Advent International, originated from three brands acquired from Shiseido Americas: Bare Minerals, Laura Mercier, and Buxom. The creation of Orvion aimed to enhance focus on these brands, which were underperforming within Shiseido's broader strategy that prioritized skincare. Advent's strategy involved leveraging its expertise in carve-out transactions, having executed over 80 of such deals in its history, which helped ensure a successful transition. The firm’s vision for Orvion includes reinvigorating the brands, optimizing operations, and capturing growth through mergers and acquisitions.
Successful Carve-Out Strategies
The successful execution of the Orvion carve-out involved a comprehensive value creation plan that encompassed various operational aspects, from digital infrastructure to supply chain management. Advent deployed significant internal resources, including a portfolio support team and operational specialists, to facilitate this transition effectively. The plan included setting up a new executive team and ensuring that all necessary functions, such as marketing and IT, were addressed to provide a robust support system for the independent business. Clear communication and alignment between Advent and the new management team were crucial for navigating the complexities of this carve-out.
Challenges and Innovations in Beauty Business
Advent recognized the unique opportunities and challenges within the beauty industry, particularly in light of rapidly changing consumer preferences and the rise of social consciousness regarding branding. Key to their strategy has been the focus on the brand identities of Orvion's products and ensuring that they resonate with modern consumers' values, like inclusion and sustainability. The firm plans to reinvigorate the brands through innovative product offerings and strategic marketing, which will enhance consumer engagement and drive revenue. Overall, the success of this strategy hinges on maintaining a delicate balance between brand heritage and contemporary market demands.
Future Outlook and Growth Plans
Going forward, Advent anticipates a bright future for Orvion, with plans for continuous investment in both internal innovations and potential mergers and acquisitions. The firm aims to have Orvion stand on its own while seeking opportunities for growth, driven by the establishment of a robust executive team capable of steering the company toward its strategic goals. Advent expects to capitalize on the operational efficiencies gained through the carve-out while nurturing the growth potential of the brand portfolio. The alignment of Advent's vision with Orvion's operational goals underscores its commitment to creating a resilient and dynamic player in the beauty market.
Tricia Glynn is a Managing Director at Advent International, the global private equity firm that oversees nearly $100 billion in assets. Orveon Global is a collective of beauty brands specializing in the future of the face. Advent carved out three brands from Shiseido Americas to form Orveon in 2021.
Our conversation covers the beauty business and the complex dynamics of a carveout transaction, including sourcing, due diligence, and preparing to hit the ground running with a new executive team and a transition plan for the newly independent business. We then turn to Advent's plan to reinvigorate the brands, improve operations, and add value through M&A. We close with challenges in the current environment, lessons learned from the deal, and a roadmap for the years ahead.
