Megalabs acquires a majority stake in DS Laboratories. The final deal is worth $100 million, as Beauty Independent has learned from sources close to Megalabs. The supplement company, Megalabs, is looking to boost the dermatological business of the famous hair growth brand, DS Laboratories.
DS Laboratories‘ CEO, Fernando Tamez, will still own a minority stake in the company and has explained that to enter the Latin American market, Megalabs’ support is ideal for its products: ‘They are very attentive to dermatology because it is the main driver of their revenues and that is why we have decided to partner with them,’ says Tamez. DS Labs will benefit from Megalabs' distribution network and operational expertise, accelerating the development and arrival of new products.
So far, DS Labs' most important market has been the United States, Mexico and China and the products dedicated to hair loss control have become 80% of the company's sales, being present in the main retailers and in the most relevant e-commerce in the sector.
Fernando Talmez has acknowledged that many companies in the cosmetics and personal care sector are launching into the hair growth and hair loss market, but admits that it is not an easy market: ‘there are many players who do not have a clear plan for the products they want to launch because they think it is just another fad, although I believe it will grow faster and faster’.
On the other hand, Fabian Rivero, the CEO of North America at Megalabs, has highlighted the importance of the acquisition and praises the science behind DS Labs' products.