What Is Powered Brands?
Powered Brands is a SPAC founded by Katherine Power, an entrepreneur who has previously launched numerous beauty and wine brands, including Clique Brands and Who What Wear, along with Dana Settle, a founding partner at venture capitalist firm Greycroft.
Together, they are trying to tap into the beauty and personal care industries, which are worth over $500 billion and the $2 trillion global health and wellness market. “Historically, there haven’t been a lot of beauty companies that have gone public or have chosen to take that path,” Power, who serves as the SPAC’s CEO, told CNBC in an interview. “There haven’t been a lot of great examples, but I think you’re going to start to see that changing because, ultimately, these businesses make great public companies.”
Power and Settle’s SPAC (otherwise known as a “blank check” shell corporation) was priced earlier this month on the Nasdaq and reported a successful public debut. Though it said last year in an initial Securities and Exchange Committee filing that it was settling out to raise $200 million. Power told CNBC that Powered Brands had gathered more than $1.5 billion in orders by the end of its first pricing day, a positive sign of enthusiasm in the SPAC’s mission.
With a successful public listing in its pocket, Powered Brands is now making big plans to build out its beauty business empire. The SPAC said its goal is to acquire between $800 million and $1.5 billion worth in assets in a bid to compete with legacy beauty conglomerates like Estée Lauder and L’Oréal.
What these business founders hope will set Powered Brands apart is its focus on a growing market for sustainability, diversity, and transparency, which have become greater priorities for customers in recent years. The SPAC will look for companies to acquire in this domain in order to create a cohesive, competitive conglomerate set to rival industry titans.
Though these business goals are ambitious, Powered Brands has the momentum of a successful public debut to drive it forward, which it perceives as a positive harbinger of what’s to come. Furthermore, there certainly appears to be space in the industry for a SPAC like Powered Brands and its business focus on sustainability.
About the Author
Jemima is a journalist who enjoys reporting on business, particularly small business and entrepreneurship.