Selena Gomez’s Rare Beauty has hired investment banks Goldman Sachs and Raymond James, but don’t expect anything to happen anytime soon, according to sources.
The beauty brand is understood to be evaluating potential options for the business, but has not begun a formal process to explore deal options, sources said.
Industry sources also said that when it is ready, the company could explore an initial public offering as it is growing so fast.
Rare Beauty’s net sales in 2023 are understood to have come in at around $350 million.
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The three-year-old brand has been a breakout success in the celebrity brand world with a strategy that leverages Gomez’s transparency around her struggles with mental health and focuses on a message of healthy self-esteem.
At the end of 2023, Rare Beauty had raised $12 million of the $100 million it has committed to mental health causes over the next decade through its Rare Impact Fund, which has partnered with 25 global organizations, and provided support and resources to the brand’s Millennial and Gen Z customers. One percent of annual sales go to the fund.
“Knowing that we’re doing an important thing while selling these products is super rewarding,” Gomez said during an interview with WWD last year.
In December, the singer, actress and entrepreneur ventured into scented body care with Find Comfort, which includes a body and hair fragrance mist, hand cream, body lotion and a Stop and Soothe aromatherapy pen. It was the first venture beyond color cosmetics for Gomez and Rare Beauty.
Raymond James declined to comment. Goldman Sachs did not immediately respond to request for comment.