Shiseido snaps up stake in Bondi grooming brand Patricks
Patricks, a Bondi Beach-founded men’s grooming brand, has snared a substantial investment from the venture arm of Japan’s Shiseido.
It is the inaugural investment made by Shiseido’s Long-Term Investments for the Future Ventures fund, a vehicle for investing in high-growth companies within the beauty and wellness space.
Patrick Kidd and wife Aimee, founders of men’s grooming brand Patricks, have sold a stake in the company to the venture arm of Shiseido.
Lempriere Wells was seeking to raise up to $10 million from investors, a mix of new capital and sale of secondary shares in Patricks, The Australian Financial Review’s Street Talk column reported in May.
This is also the first strategic partner investment for Patricks, founded in 2014 by former luxury men’s salon owner Patrick Kidd, and his wife, Aimee, a former lawyer who has worked at major firms MinterEllison and Maddocks.
“This is smaller investment for Shiseido, they usually buy businesses outright,” Mr Kidd said. “But we created a new category. I love the Japanese attention to detail and design, and the guidance, for Aimee and I [is important] as we have never run a $50 million business. They can open those Asian markets as well for us.”
This deal is the latest in a slew of offshore giants buying into locally made brands. In August, self-tanner and skincare brand Bondi Sands was sold to Japanese chemical and beauty giant Kao Corporation, while a few months before, Melbourne-based skincare group Aesop was sold to L’Oréal for $US2.53 billion ($3.7 billion), including debt.
Patricks, which took legal advice from Coghlan Duffy + Co, has previously raised small amounts of capital, initially $250,000 at a $2.5 million valuation helping to fund the brand concept. It raised another $500,000 at a $5 million valuation to help fund production. The company later raised $2 million at a $12.5 million valuation to fund operations.
Sales hit $5 million last year, up 181 per cent on the prior year, while sales between 2020 and 2022 rose at an annual rate of 123 per cent.
The capital raised will assist Patricks with its next phase of growth, expanding into overseas markets and diversifying into new products.
Patricks is already stocked at Harrods, Selfridges, Bergdorf Goodman, Saks and Harrolds. Patricks’ key categories – such as anti-hair loss and anti-ageing skincare – have contributed significantly to its growth, with new products accounting for about 4 per cent of sales in the past 12 months.
“Partnering Patricks with Shiseido is a testament to the founders’ bold vision to successfully cultivate a disruptive, premium men’s grooming brand,” said Lempriere Wells’ Alice Wells.
“It is so pleasing to see another Australian brand be recognised by a global powerhouse. It is further recognition of Australian brands’ ability to complete in international markets”.
Shiseido Americas’ president, Ron Gee, said the investment from LIFT Ventures would accelerate the company’s focus on innovation.
“We are excited to share our unique perspective, exercise our extensive experience, forging strategic partnerships and helping like-minded entrepreneurs scale and achieve long-term growth,” Mr Gee said.
“With this in mind, we are delighted to partner with Phyla and Patricks, two companies focused on driving innovation and disrupting their respective categories.”
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