CORE Closes Big Add-On for Arizona Natural

Arizona Natural Resources, a portfolio company of CORE Industrial Partners, has acquired Marianna Beauty Holdings. CORE acquired Arizona Natural Resources in June 2020.

Marianna Beauty is a custom manufacturer, formulator and distributor of shampoos, conditioners, hair gels and sprays, hair color, hand lotions, body washes, manicure and pedicure products, and nail polish remover. The company’s capabilities include research and development, testing, regulatory compliance, and kitting services.

Marianna’s customers include retail beauty brands, professional salon brands, private label clients and cosmetology schools. The company, led by CEO Mike Cate, was founded in 1968 and operates a 400,000 square foot FDA-registered and cGMP-compliant facility in Omaha, Nebraska.

Arizona Natural Resources (ANR) is a custom formulator and contract manufacturer of personal care products with a specialization in haircare and skincare products. The company’s services include concept and formula development, batching, production, quality assurance and packaging. ANR operates a 132,000 square foot FDA-registered and cGMP-compliant facility in Phoenix, Arizona.

The merging of Marianna and ANR create a company with nearly 40 filling lines and more than 100 storage and mixing tanks handling liquid, cream, and hot fill products in sizes ranging from ½ ounce sachets to full tanker trucks across nearly 550,000 square feet between the two facilities.

“Marianna and ANR are highly complementary, well-established players in the beauty and personal care industry,” said Frank Papa, a senior partner at CORE. “The two companies combine to form an industry leader with substantial operational scale, comprehensive chemical formulation capabilities, and plentiful capacity for their customers. We’re excited to work with the Marianna team to expand both their product offerings and their geographic reach.”

“We remain committed to investing in the personal care products space with a particular focus on hair and skincare companies that can further expand the combined platform,” said John May, the managing partner of CORE. “We believe the long-term growth fundamentals of this industry coupled with CORE’s capital and resources is a winning combination to build a larger industry player that will benefit our customers.”

Chicago-based CORE makes control investments in companies that have revenues up to $200 million, EBITDA up to $20 million, and enterprise values up to $150 million. Sectors of interest include a range of specialty verticals within the manufacturing, industrial technology, and industrial services sectors.

In March 2021, CORE held a final close of CORE Industrial Partners Fund II LP with total capital commitments of $465 million. Core’s new fund was oversubscribed with demand exceeding both its initial target of $400 million and its hard cap of $450 million.

© 2021 Private Equity Professional | June 3, 2021

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