Ipsy acquired BoxyCharm in a significant deal that reshaped the beauty subscription industry.
The Acquisition of BoxyCharm
In November 2020, Ipsy, a prominent beauty subscription service, successfully acquired its rival, BoxyCharm. This strategic move brought together two of the largest players in the beauty subscription box market. The acquisition was valued at an impressive $500 million, reflecting the substantial market presence and customer base of both companies.
Unifying Under Beauty for All Industries
Following the acquisition, both Ipsy and BoxyCharm became part of a larger corporate entity: Beauty for All Industries (BFA Industries). BFA Industries serves as the parent company overseeing these merged operations. The initial intent behind this consolidation was to allow both businesses to continue operating independently while benefiting from the shared resources and strategic direction of the overarching parent company.
BFA Industries is more than just a parent company for Ipsy and BoxyCharm; it also functions as an incubator for other beauty brands. A notable example is its role behind Addison Rae's Item Beauty, showcasing BFA Industries' broader involvement in the beauty industry beyond subscription services.
Key Facts of the Acquisition
The table below summarizes the core details of the BoxyCharm acquisition:
| Aspect | Detail |
|---|---|
| Acquirer | Ipsy |
| Acquired Company | BoxyCharm |
| Acquisition Date | November 2020 |
| Deal Value | $500 million |
| Parent Company | Beauty for All Industries (BFA Industries) |
| Initial Strategy | Businesses to operate independently |
| Industry Impact | Merged top two beauty subscription services |
This strategic acquisition by Ipsy, under the umbrella of BFA Industries, created a subscription superpower within the beauty sector, aiming to enhance offerings and reach a wider audience.
