São Paulo, Brazil, February 28, 2024 – Advent International (“Advent”), one of the largest and most experienced global private equity investors, today announced a strategic investment in Skala Cosméticos (“Skala” or the “Company”), a leading Brazilian haircare brand that develops 100% vegan products. The investment comes from Advent’s $2 billion managed funds dedicated to investments in Latin America, LAPEF VII.

Founded in 1986, Skala is one of the fastest growing brands in the Brazilian beauty sector, with annual expansion of roughly 30% in recent years. It is the fourth largest hair care brand in Brazil and one of the leading brands in the hair mask category. Skala’s products are present in more than 45% of Brazilian homes and the Company exports its products to over 40 countries. Through the strategic partnership, Skala will aim to expand its manufacturing capacity and distribution network as well as increase the brand’s presence in international markets.

“Maria Claudia Lacerda, Antonio Sousa and the Skala team have built a strong brand, recognized for its ability to produce high-quality products that have a dedicated and connected customer base,” said Rafael Patury, a Managing Director in Advent’s São Paulo office and co-head of the firm’s Consumer and Retail practice in Latin America. “We are excited to partner with the Skala team and build upon the success it has established in its home market to new customers and markets worldwide.”

“Our partnership with Advent will help accelerate Skala’s growth in both domestic and international markets, while allowing us to advance important agendas such as operational excellence and innovation at scale,” said Antonio Sousa, who has led Skala as CEO for the past eight years. “We are proud of the brand recognition we have built in Brazil, as well as the high caliber of products we are able to provide our customers and are excited to work with Advent on our next chapter of growth.”

In connection with Advent’s investment, Cyro Gazola, an executive with deep experience in the Brazilian consumer goods sector and abroad (including 22 years at Procter & Gamble (NYSE: PG)) and former President and CEO of Caloi, has been appointed CEO of Skala. Antonio Souza, who will remain a shareholder together with Maria Claudia Lacerda and Publio Emilio Rocha, will join the Company’s Board of Directors alongside Advent professionals and two other industry-experts, Alberto Carvalho, former CEO of Procter & Gamble in Brazil, and Andrea Mota, former Executive Director of O Boticário.

Maria Claudia Lacerda commented, “It’s a pleasure to welcome Cyro, a seasoned and talented industry executive, to the Skala family. Cyro is a passionate and visionary leader with over three decades of relevant experience, and I believe his appointment will help propel Skala into our next chapter. I sincerely thank Antonio for his guidance and efforts as Skala’s leader over the past eight years. Antonio has been a critical component to the success and growth of Skala, and I look forward to his continued contributions to the Company as a valued and active board member.”   

“I am thrilled and honored to have the opportunity to serve as the next leader of Skala,” said Mr. Gazola. “Under the guidance and visions of Maria and Antonio, the Skala team has established a brand that resonates with customers and is notable throughout the beauty and cosmetics industry, and I am confident that the momentum to date will position us for a future that is poised for growth, including expanding into underserved relevant channels to further bolster sales. I very much look forward to collaborating with the Board, our entire team and our new partners at Advent, whom I believe will provide significant resources and support to help the Company realize its full potential.”

Over the last 25 years, Advent’s managed funds have invested more than $7 billion in 70 companies in Latin America. In the Consumer and Retail sectors, Advent’s managed funds have invested $15 billion globally in over 85 companies, 24 of which in Latin America. Advent’s managed funds’ recent investments in the Consumer and Retail sector in Brazil include CRM Group (Kopenhagen and Brasil Cacau), whose pending sale to Nestlé Brasil was announced in September 2023; Grupo BIG, which was sold in 2020 to Carrefour; YDUQS, the second largest post-secondary education company in Brazil; and Fortbras, a leader in the Brazilian auto parts retail market, among others. In the beauty care sector, Advent’s managed funds have invested in Olaplex, an innovative, science-enabled, technology-driven beauty company with a mission to improve the hair health of its consumers; Orveon, a collective of iconic cosmetics brands, including bareMinerals, BUXOM and Laura Mercier; and Parfums de Marly, a French perfume company.

Advent’s investment in Skala was conducted by Odara Participações, a holding company invested by the LAPEF VII funds managed by Advent International.

IGC Partners served as Skala’s financial advisor and Mattos Filho Advogados served as the Company’s legal counsel in connection with this transaction. Lobo de Rizzo Advogados served as Odara’s legal counsel.