cosmetics

Clearview Dreams in Color

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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.

Dream Team was founded in 2013 and is based near Los Angeles in Sun Valley, CA (no website found). The company’s co-founders, Kimberly Clark and Esme Mancia, will continue to lead the Dream Team division and drive new business opportunities for the combined company.

Northwest Cosmetic Laboratories (NCL) is a formulator and manufacturer of cosmetic and skin care products for branded cosmetic and personal care companies. NCL specializes in formulating “physician strength” skincare and prestige cosmetic products, which are growing categories benefitting from new ingredient technologies and shifting consumer preferences for anti-aging and other cosmetic or health benefits. NCL’s products are sold through retail, internet and direct marketing channels. The company is headquartered in Idaho Falls, ID (www.trustncl.com).

The buy of Dream Team will elevate NCL’s existing color capabilities while adding new offerings in pressed and loose powders. “We are very excited to partner with Dream Team, which has a strong reputation for creating unique, fashion-forward products,” said NCL CEO Matt Bryant. “We have been seeking an acquisition that would complement our brand and bring a new element of innovation. We found these great attributes in Dream Team and its talented founders, Kimberly Clark and Esme Mancia.”

“This combination with NCL will help Dream Team continue to grow its reach beyond color,” said Ms. Clark. “Our capabilities complement each other very well, and we can leverage NCL’s organization and infrastructure to bring more resources to serve our customers,” Ms. Mancia.

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 (www.ClearviewCap.com).

© 2017 Private Equity Professional | May 20, 2017

Tengram Capital Acquires Algenist

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Tengram Capital Partners has entered into an agreement to acquire the Algenist skincare brand from publicly-traded TerraVia. At closing, TerraVia will retain a 20% ownership interest in Algenist and will continue to supply ingredients for the Algenist product line. The transaction is expected to close by the end of the third quarter.

Algenist is a beauty brand, developed by TerraVia and launched in 2011, that delivers anti-aging and color correcting ingredients based on TerraVia’s proprietary algae-based ingredients. The brand is distributed across 23 countries through major retail channels like Sephora, ULTA and QVC.  Algenist has won the 2014 Marie Claire Prix D’Excellence de la Beaute award and the 2015 Beauty O-wards from Oprah Magazine. The operations of Algenist are led by its CEO Frederic Stoeckel and are headquartered in San Francisco (www.algenist.com).

“Algenist is a unique brand in the prestige skin care market, with a distinct positioning and unique and proprietary ingredients. The recent bridge into color cosmetics leveraging the patented ingredient technology creates tremendous potential for the future growth of the brand,” said Richard Gersten, a Partner at Tengram. “We are looking forward to working with the existing team and leveraging our beauty industry expertise to drive continued growth across all global markets.”

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 was founded in 2010 by William Sweedler and Matthew Eby and is based in Westport, CT (www.tengramcapital.com).

A second piece of this transaction is the formation of a new partnership by Tengram and TerraVia to focus on leveraging TerraVia’s algae-based ingredient platform and Tengram’s brand-building and investment expertise to pursue other opportunities in the beauty industry.

“We are enthusiastic about our partnership with Tengram as we work together to help Algenist achieve its extraordinary growth potential,” said Jonathan Wolfson, Co-Founder, Chairman and CEO of TerraVia. “This partnership allows us to focus our captive commercial operations on foods and nutrition, while maintaining participation in Algenist’s future success and gaining access to Tengram’s expertise and leadership to participate in beauty and personal care opportunities commercializing our proprietary algae platform.”

TerraVia (NASDAQ:TVIA) is a publicly held biotechnology company that uses proprietary technology to transform a range of low-cost plant-based sugars into high-value oils. The company was founded as Solazyme in March 2003 to utilize microalgae to create a renewable source of energy and transportation fuels. In March 2016, Solazyme changed its name to TerraVia and changed its focus from bio-fuels to cheaper, more sustainable food oils and personal care products. TerraVia is headquartered in South San Francisco (www.terravia.com).

Rothschild & Co. provided advisory services to TerraVia for this transaction.

© 2016 Private Equity Professional • 8-5-16

TSG Sells IT Cosmetics to L’Oréal

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TSG Consumer Partners has entered into an agreement to sell IT Cosmetics, a makeup and skincare brand, to L’Oréal for $1.2 billion. TSG acquired a minority interest in IT Cosmetics in 2012 from founders Jamie Kern Lima and Paulo Lima.

IT Cosmetic’s products – which include make-up for eyes, lips, face, and body as well as applicators such as bushes, and tools – are primarily sold on QVC and The Shopping Channel, and through the ULTA Beauty retail chain. IT Cosmetics was founded in 2008 and is headquartered near New York in Jersey City, NJ (www.itcosmetics.com).

“Partnering with TSG was one of the best decisions we made in our journey and their strategic support these past few years, along with their unwavering encouragement of Paulo and me to pursue the vision we have for this company, has been invaluable,” said Ms. Kern Lima. “As we gear up for this next chapter in our company’s story, I know that TSG’s mark will prove to be indelible.”

“It has been extraordinary to work with Jamie and Paulo. Over the last four years, IT Cosmetics has become one of the fastest-growing beauty companies in the world. We have no doubt that IT Cosmetics will continue on this successful trajectory with the resources and guidance that L’Oréal will provide,” said Blythe Jack, Managing Director at TSG.

TSG 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 enhance value by extending brand, expanding distribution and improving operations. Since its founding in 1987, TSG has been an active investor in 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 (www.tsgconsumer.com).

Goldman, Sachs & Co. (www.goldmansachs.com), Piper Jaffray & Co. (www.piperjaffray.com), and Financo (www.financo.com) served as financial advisors to TSG and IT Cosmetics and Sidley Austin (www.sidley.com) served as legal counsel.

© 2016 Private Equity Professional • 7-26-16

Riverside Invests in Bentley Laboratories

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The Riverside Company has made a minority investment in Bentley Laboratories, a formulator and outsourced manufacturer of products for the beauty and over-the-counter pharmaceutical industries.

Bentley’s product portfolio includes creams, lotions, gels, powders and fragrances used for skin care, hair care, cosmetics, and bath and body products. In addition to its manufacturing capabilities, Bentley has a laboratory and research department which develops formulations for customers. Bentley was founded in 1982 and is led by CEO Brian Fitzpatrick and President Greg Torchiana. The company is headquartered just outside of New York in Edison, NJ (www.bentleylabs.com).

“Unlike many contract manufacturers that simply fill orders, Bentley is able to help formulate and develop products as well,” said Riverside Managing Partner Hal Greenberg. “We see many compelling avenues for growth at Bentley.”

The Riverside Company is a global private equity firm focused on investing in and acquiring growing businesses valued at up to $300 million. Since its founding in 1988, Riverside has invested in more than 420 transactions. The firm’s international portfolio includes more than 80 companies. Riverside is headquartered in New York with additional offices in Atlanta, Chicago, Cleveland, Dallas, Los Angeles, San Francisco, and London (www.riversidecompany.com).

In the past few years, Bentley has invested significantly in IT, equipment, management and training. “Riverside is eager to work with the company to accelerate its expansion through both organic growth and add-on acquisitions,” said Riverside Partner Michael Kessler.

Working with Mr. Greenberg and Mr. Kessler on the transaction for Riverside were Vice President Jay Reynolds and Associate Director, Origination Cheryl Strom.

Loeb & Loeb (www.loeb.com) provided legal advice to Riverside and WeiserMazars (www.weisermazars.com) provided accounting services.

New York-based investment bank Carriage Hill (www.carriagehill.com) advised Bentley and Giordano Halleran & Ciesla (www.ghclaw.com) provided legal services.

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 3-31-16

Five Crowns Add-ons to Cosmetic Platform

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Five Crowns Capital’s portfolio company Cosmetic Design Group has acquired Per-fekt Beauty, a Hollywood-based beauty products company. Cosmetic Design Group has been a portfolio company of Five Crowns since May 2015.

Per-fekt’s products include face, body and skin gels; eye brow gels and lash curlers; and lip gels. The company’s major retail relationships include Sephora (established in 2005) and Ulta (established in 2014). Per-fekt’s products can also be purchased direct through its online platform. The company was founded in 2005 by its president Richard Anderson and is headquartered in Hollywood (www.perfektbeauty.com).

“We are very excited to be working with Cosmetic Design Group.  They have the perfect combination of entrepreneurialism, deep industry experience with big and small companies, quick-to-market capabilities, and the financial and operational resources to support our customer service needs,” said Mr. Anderson.

Cosmetic Design Group (CDG) is a designer and formulator of branded and private label beauty products for the domestic and international beauty markets. CDG offers a range of nail and cosmetic products, specializing in turnkey services that provide a one-stop design and sourcing alternative for national brands and its retail customers. The company has over 900 SKUs of nail lacquer (the company produces more than25 million bottles a year), shampoo, conditioner, lotions and creams, and other products. CDG is based near Los Angeles in Culver City, CA (www.cosmeticdesigngroup.com).

“We are ecstatic to be partnering with the Per-fekt Beauty team,” said Maurice Rasgon, founder and chairman of CDG.  “Richard Anderson and his team will now be able to bring their renowned level of passion and enthusiasm to drive even greater innovation and education to the marketplace.  Our companies form the ideal combination of talent, creativity, financial resources, and operational execution.  These aspects will fuel great new product and marketing concepts, which will add to future growth.”

Five Crowns Capital invests in small and middle market companies that have annual revenues of $20 million to $200 million and EBITDA of $4 million to $40 million.  The firm is industry agnostic but has specific interests in media and entertainment; cosmetics; building materials; technology and electronics; energy; manufacturing; distribution; healthcare; and life sciences. Five Crowns was founded in January 2003 by Jeffrey Schaffer and is headquartered in Newport Beach (www.fivecrownscapital.com).

© 2016 Private Equity Professional • Private Equity’s Leading News Magazine • 3-15-16

Encore Closes Investment in LORAC

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Encore Consumer Capital has completed its investment in LORAC Cosmetics, a cosmetics brand founded by celebrity makeup artist Carol Shaw.

LORAC is a Hollywood-inspired brand that uses high-quality, gentle formulations across all color cosmetic categories. The name of the company is a backwards spelling of the founder’s first name. LORAC is headquartered near Los Angeles in Valencia, CA (www.loraccosmetics.com). Under Encore’s ownership, LORAC’s operations will remain in California and Ms. Shaw will still be active in the business maintaining roles in product development and public relations.

“My colleagues and I at LORAC are excited to be partnering with Encore. I am very proud of LORAC’s success, and look forward to working with the company’s new CEO, Tim McMeekan, to bring the brand to even greater heights. The best of LORAC is yet to come,” said Ms. Shaw.

“Carol Shaw is an authentic icon in the industry and a first-mover in prestige cosmetics who has built an outstanding brand. Our team looks forward to continued growth and success,” said Mr. McMeekan.

Encore Consumer Capital invests exclusively in consumer products companies that have revenues between $10 million and $100 million and where it can utilize its own consumer experience and the expertise of its operating partners at Encore Associates, a strategic advisory firm to the consumer products industry. The firm has raised nearly $600 million in equity capital and invested in 24 platform companies.  Encore was founded in 2005 and is headquartered in San Francisco (www.encoreconsumercapital.com).

Intrepid Investment Bankers advised LORAC. Intrepid is a specialty investment bank that provides M&A, capital raising and strategic advisory services to middle-market companies across various industry sectors. Intrepid was formed in 2010 by a group of senior professionals from Barrington Associates, a middle-market mergers and acquisitions advisory firm that was acquired by Wells Fargo in 2006. Intrepid is headquartered in Los Angeles (www.intrepidib.com).

Brownstein Hyatt Farber Schreck (www.bhfs.com) acted as legal counsel to Encore and Irell & Manella (www.irell.com) acted as legal counsel to LORAC.

© 2016 Private Equity Professional • Private equity’s news leader • 1-22-16