Eurazeo, has begun discussions with advisors over exit options for Aroma-Zone, a French beauty business, four sources familiar with the matter told Mergermarket.

This has not resulted in a mandate yet, one of the sources said.

Aroma-Zone, an aromatherapy concept store distributing essential oils and do-it-yourself (DIY) cosmetics, is expected to report EUR 70m EBITDA for 2025, on EUR 220m revenues, one of the sources said. It is expected to be marketed off EUR 100m EBITDA for FY26 when it comes to market, another source said.

With over three million active consumers in 2024, Aroma-Zone recorded a 56% rise in sales over the last year, following a 43% increase in 2023, according to Premium Beauty News. The company has 22 stores in France and one in Brussels, Belgium, it plans to open 10 new stores across France in 2025 alongside a debut one in London, UK, it said.

The company generated EUR 35m of EBITDA in 2023, one of the sources said, adding that Aroma-Zone’s online and in-store sales are equal.

The specific timing a sale process is unclear, the source added.

The business has been generating margins of some 30% and is very attractive, another source said.

One of the bankers compared Aroma-Zone to The Ordinary, another business known for straightforward formulations featuring active ingredients at accessible prices.

DECIEM Beauty Group Inc.(DECIEM), a Canadian vertically integrated, multi-brand company behind The Ordinary was acquired by The Estée Lauder Companies Inc, a New York City-based cosmetics company last year for around USD 1.7bn over three tranches.

Despite various challenges in the consumer sector, M&A within the beauty sector has remained highly active and attractive, according to Mergermerkat’s analysis.

Last month, L’Oreal Groupe announced that it signed an agreement to acquire a majority stake in the British skincare brand Medik8, with a seller Inflexion, European mid-market private equity firm, remaining as a minority shareholder.

Earlier this year, Mergermarket reported that Medik8 auction was popular with strategics, and PEs, in the second-round willing to pay over 15x EBITDA multiple.

L’Oreal was in exclusive talks to acquire Medik8 with a projected EBITDA of GBP 34m for FY25 and an enterprise value of around GBP 800m, this news service reported in May. This was followed by a June report from The Financial Times stating  that L’Oreal was set to acquire Medik8 for approximately EUR 1bn.

Eurazeo and its partners invested EUR 414m, of which EUR 235m for Eurazeo’s balance sheet, in 2021, becoming Aroma-Zone’s main shareholders, alongside the founding Vausselin family.

It has developed a unique offering of more than 1,900 products and 3,000 recipes, the press release said.

Eurazeo declined to comment. Aroma-Zone did not respond to request to comment.