Skala Lola Merger Shakes Beauty Business in Brazil

Overview

Skala Lola merger [Rio de Janeiro, September 4, 2025], backed by Advent International through Platina Cosmético, creates a R$2 billion (~US$400 million) beauty group. The Skala–Lola From Rio deal establishes one of the largest independent players in Brazil’s cosmetics market, a sector where multinationals like L’Oréal, Unilever, and Natura &Co dominate.

Skala Lola merger and the business rationale

The Skala Lola merger is more than a combination of two brands; it marks a turning point in Brazil’s consumer market. The country is the fourth largest beauty and personal care market globally, generating more than US$30 billion in annual sales. Yet, despite the presence of multinational players such as L’Oréal, Unilever, and Natura &Co, the industry remains fragmented. Mid-sized Brazilian companies often struggle to scale, and private equity firms are increasingly stepping in to drive consolidation.

This Skala–Lola tie-up signals a buy-and-build strategy in consumer goods.

By positioning Skala as a consolidation platform, Advent International is applying its classic buy-and-build strategy. The acquisition of Lola From Rio strengthens the portfolio with a cult brand recognized for creativity and sustainability, complementing Skala’s affordable vegan product lines. At a valuation of R$2 billion, the transaction also signals renewed investor confidence in branded consumer goods after a subdued period of M&A in the sector.

Strategic and business impact of the Skala Lola merger

The Skala Lola combination creates a multi-brand group capable of competing more directly with global beauty leaders. Skala brings its extensive supermarket and pharmacy distribution channels, while Lola contributes specialty retail and a strong online presence. The Skala-Lola business integration broadens the group’s reach in Brazil and opens the door for regional expansion across Latin America and Europe, markets where both brands already have organic visibility.

Operationally, the companies expect to benefit from integrated supply chains and shared R&D resources, accelerating new product launches and supporting faster innovation cycles. With Advent’s backing, the merged entity aims to improve efficiency, strengthen bargaining power with suppliers and retailers, and push for sustained growth in both domestic and international markets.

The Firms Behind the Deal

Lobo de Rizzo Advogados served as counsel to Skala (Platina Cosmético/Advent International) in the Skala Lola merger. The representation of Lola From Rio has not been disclosed.

Related Reading

• Arezzo & Grupo Soma merger with Gisele Bündchen asembassador – A landmark fashion and retail tie-up in Brazil, valued at billions, that not only reshaped the sector but also drew international headlines thanks to Gisele Bündchen’s role as investor and brand figure.
• BRF and Marfrig merger in protein sector – A transformative deal in the food industry that created one of the largest protein companies in the world, highlighting how consolidation continues to define Brazil’s consumer staples market.
• IORQ secures Series A for fintech infrastructure – A fast-rising Brazilian fintech backed by major venture capital firms, showing how private equity and venture money are fueling consolidation-ready platforms across industries.

Resumo em português

A fusão Skala Lola, anunciada em 4 de setembro de 2025 no Rio de Janeiro, une a Skala (via Platina Cosmético, do Advent) e a Lola From Rio. O negócio, Skala-Lola merger, cria um grupo de beleza avaliado em R$2 bilhões, com forte presença nacional e planos de expansão internacional.