As we review the top 10 deals of 2022 in the women’s health and sexual health space, we look into the first major M&A trend of the year: consumer packaged goods (CPG) conglomerates making acquisitions to expand their brand portfolios.
CPG conglomerates have been selling women’s health and sexual health solutions for years, with brand portfolios that include tampons, condoms, incontinence pads, etc. For example, P&G, the owner of Downy, Tide and Pampers also owns menstrual product brands Tampax and Always. And Reckitt, the owner of Lysol and Clearasil also owns sexual wellness brands Durex Condoms and K-Y Jelly.
Startups are making a splash by creating new and innovative women’s health and sexual health CPG products. CPG conglomerates are taking note and acquiring these brands to keep up with innovation trends and the consumers’ evolving demands.
Top Deals of 2022
The first two deals in our top 10 of 2022 demonstrate this trend:
1) Essity acquires Knix and Modibodi for $320M and $91M respectivley:
Knix, a pioneer in the reusable leak-proof underwear category, offers a range of intimate apparel prioritizing function over frill. Environmentally friendly period-wear brand, Modibodi, also offers leak-proof apparel, with an underwear line that is biodegradable.
Essity is a Swedish company, founded in 1975, with approx. $13B in annual revenue. Its brand portfolio includes: Plenty paper towels, Libra pads and tampons, and Drypers diapers. As they look to innovate in women’s health, Modibody and Knix are great additions, making Essity the global market leader within leakproof apparel. Magnus Groth, CEO of Essity, celebrates the acquisitions saying they will not only strengthen Essity as a company but will enable faster growth of quality, better-for-the-planet women’s health solutions.
2) Kimberly-Clark acquires majority interest in Thinx for $181M:
In February 2022, Kimberly-Clark bought a majority interest for $181M in Thinx, the leading period and incontinence apparel company. Providing a socially and environmentally conscious period and incontinence solution, Thinx sells leak-proof apparel for women through all stages of life from their first period (Thinx Teens) to routine menstruation, to postpartum and menopause.
Kimberly-Clark is a US based, 150 year old company that generates approx. $19B in annual revenue. Its brand portfolio includes: U by Kotex pads and tampons, Huggies diapers, and Cottonelle toilet paper. As they look to innovate in women’s health Thinx will act as a lucrative and strategic addition.
This Trend is Not New
Back in 2021, Reckitt acquired Queen V, which joined K-Y and Durex already housed by the CPG mega-company. Queen V stands apart with its bold vaginal health products, centric to women’s health and sexual-wellness. Later that year, Edgewell acquired Billie, a brand dedicated to providing women with quality body-care products, for $310M. The year before that P&G acquired This is L for $100M. No doubt, women’s health and sexual health CPG brands will continue to be strong acquisition targets in the years to come.
Future CPG Conglomerate Acquisition Targets
Amboy Street portfolio companies, Aunt Flow and Dame, are both strong acquisition contenders for CPG conglomerates.
Aunt Flow, the maker of menstrual product dispensers for public and corporate bathrooms alongside its organic tampons and pads, can provide CPG conglomerates with a new distribution method. Currently, CPG conglomerates reach new customers through advertising and brand exposure on retail shelves. Aunt Flow would help an acquirer reach new customers through its dispensers in 23k bathrooms around the world.
Dame, female-focused sexual wellness products, offers a CPG conglomerate acquirer a fresh take on the sexual wellness category.
Here are more promising, early stage, women’s health focused, CPG targets to follow:
The Flex Co. – Listed as one of the most promising women’s health start-ups in 2022 by Business Insider, The Flex Co. sells the Flex Disc, a reusable and effective period product alternative.
Attn Grace – With a mission to destigmatize the aging process and help the environment, Attn Grace offers products that range from liners and pads to deodorant and body oil, developed and delivered sustainably.
Kindra – Kindra sells menopause essentials including sexual health products. From lotions to supplements, Kindra provides treatments for almost every menopause symptom.
Womaness – Similarly, Womaness focuses on menopause and offers skin care products for the aging woman.
Awkward Essentials – Awkward Essentials creates solutions for intimate problems, like an after sex cleanup sponge – the Dripstick.
Stix – Stix provides products to meet your sexual health, pregnancy and fertility needs. This includes UTI and yeast infection treatments, fertility and pregnancy tests, vitamins and contraception.
If you are looking for an early stage investment with a clear path to exit, look no further. Startups making innovative CPG products in the women’s health and sexual health space are perfect acquisition targets for CPG conglomerates!
