TruArc Partners has acquired Trademark Cosmetics in partnership with David Ryngler, the company’s founder and president.
Trademark Cosmetics (TCI) is a contract formulator and manufacturer of beauty and personal care products for both established and emerging brands.
TCI operates a 160,000-square-foot facility in Riverside, California, which includes its in-house R&D lab and a variety of compounding and filling capabilities across several packaging formats ranging from bottles and jars to tubes. Mr. Ryngler founded TCI in 1994 and he has grown the company alongside General Manager Eko Handoko for more than 20 years.
With the close of the transaction, TruArc has named Kristopher Dover as TCI’s new CEO. Mr. Dover has spent more than 30 years in manufacturing and operations focused on consumer end markets. Mr. Handoko will continue in his role as general manager.
“The combination of TCI’s formulation and manufacturing expertise, alongside its strong customer-service orientation, have been instrumental in its growth and will serve as the fundamental driver for continued improvement and expansion going forward,” said Mr. Dover. “Working closely with Eko, and with support from TruArc, we believe we will successfully scale TCI to become a best-in-class partner to growth-oriented brands.”
“Building TCI has been an exciting journey and I am thrilled to be partnering with TruArc,” said Mr. Ryngler. “The addition of TruArc’s expertise and capital will enable us to continue to enhance the service and capabilities that we provide to our customers.”
Mr. Ryngler will remain with TCI as an investor and as a member of the company’s board of directors. Don Sturdivant, an operating partner at TruArc, will also join the board of directors as its non-executive chairman. Jeffrey Nodland, the retired CEO of KIK Custom Products – a maker of household and personal care products owned by Centerbridge – will also join the board of directors. Mr. Sturdivant and Mr. Dover previously worked together at Graphic Packaging and Altivity Packaging, where Mr. Dover led several businesses and reported to Mr. Sturdivant.
“At TruArc, we are focused on investing in well-positioned platforms that are capable of transformational growth, and we believe TCI is a well-positioned business that is poised to scale with our planned investments,” said Gerald Sheehan, a partner at TruArc. “We are equally excited to bring our capital and M&A expertise to execute a focused acquisition strategy that will continue to scale TCI’s operation in California and expand the platform nationally. Our goal is to further enhance TCI’s position as the go-to partner for high-growth brands.”
New York City-headquartered TruArc (formerly Snow Phipps) invests from $50 million to $150 million in companies with enterprise values from $100 million to $500 million and EBITDA from $10 million to $50 million. Sectors of interest include specialty manufacturing and business services.
Guggenheim Securities was the financial advisor to TruArc, and American Discovery Capital was the financial advisor to TCI.
© 2023 Private Equity Professional | April 27, 2023
