DUBAI: Huda Beauty — founded by US Iraqi sisters Huda, Mona and Alya Kattan — is divesting its ownership in fragrance brand Kayali, co-founded by Huda and Mona Kattan in 2018, the pair announced on Monday.
Mona is partnering with global growth equity firm General Atlantic to jointly own the fragrance brand.
Kayali will operate as an independent company, with Mona continuing as the brand’s CEO.
Since its launch in 2018, Kayali’s product offerings have grown to 24 fragrances, which are sold by retailers like Sephora, Walgreens Boots Alliance, and ASOS.
The move allows Huda Beauty’s owners to buy back a stake held by TSG Consumer Partners since 2017, according to a joint statement by the three companies on Monday.
Beauty sells everything from luxury eyelashes to makeup and skincare products. The company has more than 54.2 million followers on Instagram, well ahead of rivals Rare Beauty and Kylie Cosmetics which have 8 million and 24.7 million followers respectively.
"Huda Beauty is making history as one of the few established beauty brands to return to full founder ownership," the statement said, according to Reuters.
A value for the deal, which is subject to regulatory approval, was not disclosed.
Goldman Sachs International acted as Huda Beauty’s financial advisor, and Gibson Dunn served as its legal advisor. Skadden, Arps, Slate, Meagher & Flom served as Mona Kattan’s legal advisor.
Raymond James served as General Atlantic’s financial advisor, and Latham & Watkins served as its legal advisor.