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
Lime Crime, one of the first digitally-native beauty brands, has been acquired by Tengram Capital Partners.
“I’m delighted to be joining the company at this pivotal moment,” said Ms. Panagakis. “Lime Crime is a millennial brand with a message that resonates with women everywhere – ‘it’s OK to be bold, experiment and have fun!’ The partnership with Tengram is an important next step in the brand’s evolution, bringing deep industry expertise and greater opportunities to offer unicorns and women everywhere the Lime Crime magical universe. As we expand the brand’s footprint and offerings, Lime Crime will continue to be a brand that stands apart, fulfilling its mission to revolutionize makeup, empower women and smash traditional boundaries.”
“Lime Crime is truly unique among beauty brands, with a powerful following and a deep understanding of its consumers and their expressive approach to cosmetics,” said Richard Gersten, Partner at Tengram. “We have tremendous appreciation for what Doe, Sasha Valentine and the team have built over the past ten years: a revolutionary brand that empowers consumers to express themselves and inspires them to push past the traditional limits of beauty. In an era of beauty brand proliferation, Lime Crime’s authenticity and innovation stands above the rest. Lime Crime is a tremendous fit in our strong portfolio of beauty brands, and we look forward to leveraging our experience to help the Lime Crime team achieve its growth prospects.”
Tengram invests in companies in the branded consumer products and retail sectors. Specific areas of interest include apparel, sporting goods, consumer electronics, home furnishings, health & beauty, spirits, and food & beverages. Tengram’s current beauty portfolio includes ReVive, Algenist, specialty beauty retailer Cos Bar, and natural beauty brand This Works. The firm was founded in 2010 and has offices in Westport, CT and New York City (
Gryphon Investors has agreed to acquire a majority equity interest in Milani Cosmetics from current owners Ralph Bijou and Laurie Minc who will maintain a minority equity interest in the company.
The buy of Milani is Gryphon’s first investment in the beauty sector. “Gryphon has long been exploring the $45 billion beauty and personal care space and is excited to commit to the industry,” said Dennis O’Brien, a Partner of Gryphon. “Leveraging Michelle’s deep knowledge of the sector, we believe we have identified a strong growth platform in Milani, one which has a variety of proven and developing sales channels and the opportunity to reach a broad and growing consumer base that has discovered Milani’s quality and is actively seeking out the brand. We look forward to working with Michelle, Ralph, and Laurie to build upon the company’s proven success.”
Gryphon Investors 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 ranging from $100 million to $500 million. Sectors of interest include business services, consumer and retail, automotive, chemical, general manufacturing, healthcare and hotels. Gryphon closed its fourth private equity buyout fund, Gryphon IV, in November 2016 at $1.1 billion, and raised a $100 million captive mezzanine fund, Gryphon Mezzanine Partners, in August 2017. Gryphon Investors is based in San Francisco (
MidOcean Partners has acquired BH Cosmetics, a direct-to-consumer color cosmetics brand focused on the Millennial/Generation Z consumer.
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.
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 (
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 (
TSG Consumer Partners has acquired a minority stake in Huda Beauty, a cosmetics branded founded by Huda Kattan in 2013.
Ms. Kattan has become a top beauty influencer with a social media following of over 27 million people and was named one of Forbes’ “Top 2017 Influencers in Beauty” and TIME’s “Most Influential People On The Internet”. “We feel incredibly honored to partner with Huda Kattan and her team,” said Colin Welch, a Managing Director at TSG. “We’ve invested in the beauty sector for over ten years and have seen a marked shift in the way consumers engage with brands. Consumers today want an authentic connection with a founder and to feel as though they are part of something much larger than themselves. Huda’s unprecedented social community enables them to do just that.”
TSG Consumer Partners 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 create value by extending brand, expanding distribution and improving operations. Sectors of specific interest include 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 (
“Huda Beauty’s unrivaled digital reach, global influence and best-in-class product offering help women worldwide look and feel their best every day,” said Hadley Mullin, a Senior Managing Director at TSG. “We are thrilled to join forces with Huda Beauty, which is poised for significant global expansion, fueled by Huda’s passion and commitment to her ever-expanding consumer community.”
Tengram Capital Partners has agreed to acquire luxury skincare brand RéVive from Shiseido Americas Corporation. RéVive was acquired by Shiseido Americas as part of its 2016 acquisition of Gurwtich Products from Alticor. Closing is expected to be completed by the end of November.
The new company will be led by Elana Drell Szyfer, the ex-CEO of Laura Geller New York, a cosmetics brand and a former portfolio company of Tengram, which the firm sold in 2016. Ms. Drell Szyfer joined Laura Geller in 2014 from Kenneth Cole where she was EVP of Global Brand Strategy. She has over two decades of experience in the beauty industry having worked at Estee Lauder, L’Oreal, and Avon. At Estee Lauder, she held the role of Senior Vice President of Global Marketing for the Estee Lauder brand, and prior to that, Vice President of Global Marketing for Prescriptives. She then spent three years at AHAVA Dead Sea Laboratories (a cosmetics company), where she was Chief Executive Officer. Ms. Drell Szyfer is currently an Operating Advisor with Tengram.
“We are delighted to add RéVive to our strong and growing portfolio of beauty brands,” said Richard Gersten, a Partner at Tengram Capital. “As an investor in consumer brands with a deep knowledge in beauty, I have watched RéVive for a long time. We believe it is a gem, thanks to Founder Dr. Gregory Bays Brown, its exceptional products based on Nobel prize-winning technologies, a loyal consumer following, and its impressive distribution. The RéVive brand has strong growth prospects, and we look forward to investing in key areas to enable the brand to thrive.”
Tengram invests in companies in the branded consumer products and retail sectors. Specific areas of interest include apparel, sporting goods, consumer electronics, home furnishings, health & beauty, spirits, and food & beverages. Tengram’s current beauty portfolio includes Nest Fragrances, Algenist, specialty beauty retailer Cos Bar, and natural beauty brand This Works. The firm was founded in 2010 and is based in Westport, CT (
Shiseido Americas is a subsidiary of Tokyo-based Shiseido Company (TSE:4911), a global beauty company which brands include Shiseido, NARS, Clé de Peau Beauté, bareMinerals, Laura Mercier and several fragrance brands including Issey Miyake, Narciso Rodriguez and Dolce & Gabbana. Shiseido Americas is headquartered in New York (
Northwest Cosmetic Laboratories, a portfolio company of Clearview Capital since April 2014, has acquired Dream Team Beaute, a formulator and manufacturer of skin care and color cosmetic products.
Clearview Capital invests from $8 million to $50 million of equity in companies that have from $3 million to $15 million of EBITDA. Sectors of interest include business services, healthcare services, manufacturing, and specialized distribution. The firm was founded in 1999 by James Andersen and Calvin Neider and is headquartered in Old Greenwich, CT with an additional office in Los Angeles (
