MidOcean Partners has acquired BH Cosmetics, a direct-to-consumer color cosmetics brand focused on the Millennial/Generation Z consumer.
BH Cosmetics provides a full suite of color cosmetics including products for the face, lips, eyes, brows as well as brushes and accessories. Part of the company’s marketing strategy is to maintain a worldwide social media following across multiple platforms and the company utilizes an active influencer network to drive brand awareness and customer acquisition. BH Cosmetics was founded in 2009 and is headquartered in Los Angeles (www.bhcosmetics.com).
BH Cosmetics will continue to be led by its founders Fred Sadovskiy (CEO), Kirill Trachtenberg (Chief Strategy Officer), and Robert Sefaradi (COO), each of whom have maintained an equity ownership in the company alongside MidOcean.
“We are incredibly excited to partner with BH, a leading color cosmetics brand with a strong direct-to-consumer and digital marketing business model and multiple levers for continued growth,” said Jonathan Marlow, Managing Director at MidOcean. “MidOcean has significant experience building strong consumer brands with founder-owned businesses and we believe that BH Cosmetics has substantial opportunities for continued growth and expansion fueled by appropriate investments in people, infrastructure and marketing. We see numerous opportunities to increase BH’s presence across channels and geographies and look forward to working with Fred, Kirill, Robert and the talented team at BH to drive this growth.”
The buy of BH Cosmetics is another in a line of investments made by MidOcean in the beauty sector. In August 2015 the firm acquired Image Skincare, a seller of moisturizers, cleansers, eye cremes, masques, peels and foundations based in Lantana, FL (www.imageskincare.com); and in June 2017 it sold Agilex Fragrances (www.agilexfragrances.com), a Piscataway, NJ-based provider of fragrance products and related creative and technical services, to Firmenich, the world’s largest privately-owned company in the fragrance and flavor business. MidOcean acquired Agilex in December 2012.
“We are very excited to begin our partnership with MidOcean,” said Mr. Sadovskiy. “MidOcean has tremendous resources and experience building branded consumer products platforms and has a proven track record of helping take founder-led consumer businesses to the next level. We are confident that MidOcean will be an excellent partner for BH as we look to continue BH’s expansion in the color cosmetics market.”
MidOcean invests in middle market companies active in the business and consumer services sectors. The firm was founded in 2003 and is based in New York (www.midoceanpartners.com).
Los Angeles and New York-based investment bank The Sage Group (www.sagellc.com) was the financial advisor to BH Cosmetics.
© 2018 Private Equity Professional | January 5, 2018
