Gryphon Investors has acquired RoC Skincare, an anti-aging skincare brand, from Johnson & Johnson Consumer.
RoCs’ anti-wrinkle and anti-aging skincare products are designed to reduce signs of facial aging including wrinkles, dark spots, and dullness of skin. RoC was created in 1957 by French pharmacist Dr. Jean-Charles Lissarrague and was the first brand to stabilize Retinol, a dermatologist-recommended cosmetic ingredient for improving the appearance of aging skin.The company’s more than 75 products are primarily manufactured in France and sold in the US, Europe, and Latin America through the mass, drug, club, specialty, e-commerce, and pharmacy channels. Key customers include Walmart, Target, CVS, Walgreens, Costco, Ulta, and Amazon. RoC is headquartered in New York (www.rocskincare.com).
As part of the carve-out transaction, Steve LaMonte and Michelle Taylor, executive advisors to Gryphon, will be recruiting a senior management team to lead RoC under Gryphon’s ownership.
“RoC has a rich history of skincare solutions innovation stemming from its French pharmacy roots,” said Matt Farron, a principal at Gryphon. “As the first brand to stabilize Retinol, which is one of the top US dermatologist-recommended cosmetic ingredients for improving the appearance of aging skin, RoC continues to be one of the largest brands solely focused on anti-aging skincare products. By leveraging the brand’s French pharmacy heritage and track record of clinically proven innovation, we see numerous opportunities to expand RoC’s product offering to establish it as a brand with complete skincare solutions leading to increased market share.”
Gryphon makes leveraged acquisitions and growth investments in middle-market companies. The firm invests from $50 million to $200 million of capital in companies with sales from $100 million to $500 million. Sectors of interest include business services, consumer and retail, automotive, chemical, general manufacturing, healthcare and hotels. The buy of RoC is the second investment made by Gryphon in the beauty sector after the firm acquired color cosmetics brand Milani Cosmetics in June 2018.
Gryphon closed its fourth private equity buyout fund, Gryphon IV LP, in November 2016 at $1.1 billion, and raised a $100 million captive mezzanine fund, Gryphon Mezzanine Partners LP, in August 2017. Gryphon Investors is based in San Francisco (www.gryphoninvestors.com).
“We are excited to build on RoC’s past to connect with today’s customers. We see opportunities to expand the portfolio beyond Retinol and anti-aging, improve product support in international markets, strengthen links with the dermatology community, and drive customers into stores with creative, technology-driven product launches and marketing efforts,” said Mr. LaMonte. “We also plan to boost RoC’s engagement with all age groups. In addition to RoC’s core customer demographic of women aged 40+, millennials are showing great interest in the category and have responded positively to product trials.”
Sawaya Partners (www.sawayapartners.com) was the financial advisor to Johnson & Johnson. Luc-Henry Rousselle at LSH Partners was Gryphon’s financial advisor.
© 2019 Private Equity Professional | January 23, 2019