TSG Consumer Partners has entered into an agreement to sell IT Cosmetics, a makeup and skincare brand, to L’Oréal for $1.2 billion. TSG acquired a minority interest in IT Cosmetics in 2012 from founders Jamie Kern Lima and Paulo Lima.
IT Cosmetic’s products – which include make-up for eyes, lips, face, and body as well as applicators such as bushes, and tools – are primarily sold on QVC and The Shopping Channel, and through the ULTA Beauty retail chain. IT Cosmetics was founded in 2008 and is headquartered near New York in Jersey City, NJ (www.itcosmetics.com).
“Partnering with TSG was one of the best decisions we made in our journey and their strategic support these past few years, along with their unwavering encouragement of Paulo and me to pursue the vision we have for this company, has been invaluable,” said Ms. Kern Lima. “As we gear up for this next chapter in our company’s story, I know that TSG’s mark will prove to be indelible.”
“It has been extraordinary to work with Jamie and Paulo. Over the last four years, IT Cosmetics has become one of the fastest-growing beauty companies in the world. We have no doubt that IT Cosmetics will continue on this successful trajectory with the resources and guidance that L’Oréal will provide,” said Blythe Jack, Managing Director at TSG.
TSG makes control and non-control investments of $15 million to $100 million in companies with EBITDAs of $3 million to $50 million where there is an opportunity to enhance value by extending brand, expanding distribution and improving operations. Since its founding in 1987, TSG has been an active investor in the food, beverage, restaurant, beauty, personal care, household, apparel & accessories, and ecommerce sectors. The firm has $5 billion of assets under management and is headquartered in San Francisco (www.tsgconsumer.com).
Goldman, Sachs & Co. (www.goldmansachs.com), Piper Jaffray & Co. (www.piperjaffray.com), and Financo (www.financo.com) served as financial advisors to TSG and IT Cosmetics and Sidley Austin (www.sidley.com) served as legal counsel.
© 2016 Private Equity Professional • 7-26-16
