Cosmetics retailer Mecca considers $2 billion exit
Mecca co-founders Jo Horgan and Peter Wetenhall are considering selling their beauty empire, with a potential price tag between $1.5 billion and $2 billion. After years of rejecting interest from investment bankers, the pair appear to be laying the groundwork for a deal.
Transaction snapshot
Deal value: $1.5 billion to $2 billion
Deal multiples: N/A
Deal type: Potential sale
Investors: Early-stage interest from advisers and potential buyers
Sources say Horgan and Wetenhall have been engaging advisers, accountants, and consultants since the start of the year. While no formal offers have been made, early talks are underway, with legal and banking advisers expected to follow soon.
If it moves ahead, this would be one of the biggest transactions of 2025, drawing significant attention from major financial players. Recent deals in the sector set a high benchmark—Aesop sold to L'Oréal for $3.7 billion, Bondi Sands was acquired for $450 million, and Adore Beauty listed on the ASX in 2020.
Founded in 1997 in South Yarra, Mecca has expanded into a leading beauty retailer, boasting 107 stores across Australia and New Zealand. The company employs 7,400 staff and reported $972 million in revenue with $27 million in post-tax profits in 2022. Despite its size, Mecca has remained outside the deals market, relying on debt for growth rather than external equity.
A sale could lead to the consolidation of Mecca’s structure, which is reportedly split into three entities to keep the founders’ wealth private.
The brand operates across three formats: Mecca Cosmetica, its prestige boutique concept; Mecca Maxima, aimed at younger consumers; and Mecca, which blends both. It also has concessions in Myer stores, a strong e-commerce platform, and launched its private-label skincare range, Kit, in 2022.
Recent growth has been driven by a younger customer base, with social media trends bringing school-aged shoppers into the market. Mecca’s next focus is on services through its Aesthetica brand, offering skin consultations, facials, skin needling, and laser treatments.
