PRIVATE EQUITY INVESTING
In Beauty & Personal Care Companies
January 28, 2020 @ 8:00 am - 5:00 pm
Reasons Why Investors Crave
Prestige Beauty Brands
Private Equity Investing
In Beauty & Personal Care Companies
When The Estee Lauder Companies acquired Too Faced Cosmetics from PE firm General Atlantic in 2016, it was Lauder’s biggest deal ever.
A major selling point was the indie brand’s connection with millions of millennials who feel passionately about social media, fashion, and pop culture.
Too Faced had over 7.3 million Instagram followers and Estee Lauder’s craving to attract millennial taste-makers convinced it to pay a whopping $1.45 billion – about three times more than what General Atlantic had paid just 18 months earlier.
Successful beauty and personal care brands are increasingly targets for private equity investors. Brands with massive social media and digital marketing followings have ignited a frenzy among investors.
Here are reasons why —
- Indie brands are flourishing as barriers-to-entry fall.
- To make it to the next level, they need more capital and marketing expertise.
- Among strategic buyers, there’s big appetite for these indie brands, which have proven agile at capitalizing on trends like
- viral marketing
- transparency in pricing
- and clean, inclusive, sustainable beauty.
- Unlike other retail categories – apparel, for instance — the “prestige beauty” category overall is seeing strong year-over-year growth – up 6% last year, according to NPD Group. Some subsectors are growing even faster — skincare was up 13%, with natural products accounting for more than a quarter of these new sales.
As the big beauty and personal care companies fight to remain relevant in an industry disrupted by technology and fast-changing consumer tastes, General Atlantic isn’t alone in generating strong returns from selling younger fast-growing brands.
TSG Consumer Partners, Castanea Partners, and L Catterton are among the firms that have recently sold brands for fat returns to big strategic buyers – here are examples —
- L’Oréal acquired IT Cosmetics, a top-selling prestige makeup and skincare brand from TSG Consumer Partners for $1.2 billion
- Procter & Gamble bought Castanea Partners’ First Aid Beauty, a premium skin care and make-up brand, for a reported $250 million.
- L’Occitane International agreed to buy luxury British skincare brand Elemis for $900 million in cash from Steiner Leisure, a portfolio company of L Catterton.
But investing in a disrupted category carries risks. Consumer tastes are changing so fast that trends can become obsolete quickly. This makes picking brands that can stand the test of time harder.
For example, Warburg Pincus’ beauty company, Glansaol, filed for bankruptcy last December, citing
- changing consumer tastes
- a shift away from brick-and-mortar shopping and TV shopping networks
- a downturn in the single-brand subscription business
- difficulties bringing various brands together on one back-end platform.
TSG Consumer Partners LLC
Tuesday, January 28, 2020
8:00am – 5:00pm
Midtown Manhattan, NY
Register now to gain valuable insight as our panelists assess the outlook for the beauty and personal care sectors at the The Capital Roundtable’s all-day conference on Tuesday, January 28, 2020, in New York City.
Three Key Reasons Why You Should Join Us
- Hear from top investors about which segments of beauty and personal care have the best prospects this year — despite high valuations.
- Get tips on finding beauty and personal care companies that can survive long-term as brand lifecycles shorten.
- Learn how social media and digital marketing are altering the competitive beauty and personal care landscape.
- How to invest in trends such as clean beauty, inclusive beauty, and viral marketing
- The rise of male personal care
- Opportunities in beauty manufacturing
- Which strategic buyers have the biggest appetite to do deals
- The prospects for buying and growing corporate orphans versus upstart indie brands
- How and why venture investors are getting involved in this industry
- Where it makes sense to pay high valuations –and where it doesn’t
- The latest in beauty tech and how to add it to your portfolio companies
- How to work with founders in the beauty and personal care industry
- How to do due diligence in an industry that’s changing rapidly
- Best practices for building a multi-brand platform
- Opportunities in China if the nation’s animal testing requirements are changed
- How trade and tariffs may affect beauty brands
- How an economic slowdown would affect the beauty and personal care category
Recent Middle-Market Beauty & Personal Care Deals
- Glossier, a direct to consumer beauty brand, raised a $100 million Series D led by Sequoia Capital, giving it a valuation of more than $1 billion.
- Expanscience Laboratories purchased JMK Consumer-backed Babo Botanicals, a maker of mineral- and plant-based skin-care, sun-care, and hair-care products.
- Hammond Kennedy Whitney & Co. bought Indigo Wild, a Kansas City-based maker of bath, skin, and home products including the Zum product line.
- New Mountain Capital-backed Topix Pharmaceuticals bought DERMA E, a California-based provider of eco-ethical skincare. It also bought ClarityRx, a Newbury Park, California-based skincare company.
- L Catterton invested $200 million in Los Angeles-based Honest Company, a provider of natural baby and clean beauty products.
- San Francisco Equity Partners acquired a majority stake in Jane Iredale, a Great Barrington, Mass.-based makeup and skincare company using minerals, organic botanicals and other natural ingredients.
- Main Post Partners invested in Not Your Mother’s, a Tampa, Fla-based haircare brand using clean ingredients.
- Wind Point Partners-backed Vee Pak purchased Holmdel, N.J.-based Cosmetic Essence Innovations, a fragrance, hair care and skin care products company.
- Gryphon Investors acquired RoC Skincare, an anti-aging skincare brand, from Johnson & Johnson Consumer Inc.
- Ancora Investment Holdings, a partnership between beauty industry veterans and Winona Capital, invested in natural luxury cosmetics brand Vapour Organic Beauty.
- Cornell Capital invested in KDC, a Quebec-based manufacturer of color cosmetics, skincare, haircare, and other personal care products.
- TSG Consumer Partners acquired a minority stake in Huda Beauty, one of the fastest-growing beauty brands in the world.
Irena Blind is Principal, Business Development at TSG Consumer Partners. Before joining TSG Consumer Partners, Irena was an investment banker, covering branded consumer goods, e-commerce and specialty retail. She was Senior Vice President at Raymond James and Vice President at Stephens Inc. Prior to Stephens, Irena worked at Industrial Renaissance, a middle market private equity fund focused on special situations, rolls ups, restructurings and operational improvement, primarily in apparel and consumer products. Irena started her career at Credit Suisse First Boston and Donaldson Lufkin & Jenrette, in consumer and retail investment banking groups.
Irena graduated as a Regent Scholar from Walter A. Haas School of Business at University Of California at UC Berkeley, with a BS in business administration and a concentration in international business, finance and accounting.
This Capital Roundtable conference in midtown, New York City, is all-business, all-targeted, all-designed to be a completely focused day of practical information and revealing insights about beauty & personal care companies. You’ll gain valuable insights from —
- Three informative panel discussions
- Two revealing keynote presentations
- Real-world perspectives from company investors
- Industry outlooks from noted sector experts
- War stories and lessons learned from experienced hands
- Irena Blind, Principal, TSG Consumer Partners LLP
- Burt Alimansky, Chairman & CEO, The Capital Roundtable
Preliminary Speaker List
- Mark H. Belford, Managing Director, KPMG Corporate Finance LLC
- Andrew Charbin, Director, The Sage Group LLC
- Michael J. Garcia, Senior Vice President, Deloitte Corporate Finance LLC
- Kelly McPhilliamy, Managing Director, Harris Williams
- Martin L. Okner, President & COO, dpHUE
- Lisa Stein, Managing Director, Nomura Holdings Inc.
7:30am – 8:30am
Networking & Registration & Breakfast
8:30am – 9:00am
Welcoming Remarks & Audience Self-Introductions
9:00am – 9:30am
Conference Chair’s Introduction —
- Irena Blind, TSG Consumer Partners LLC
9:30am – 10:30am
First Panel —
10:30am – 11:15am
Networking & Coffee
11:15am – 12:00pm
Morning Conversation —
12:00pm – 12:30pm
Morning Keynote —
12:30pm – 1:30pm
Networking & Luncheon
1:30pm – 2:30pm
Second Panel —
2:30pm – 2:45pm
Networking & Dessert
2:45pm – 3:30pm
Afternoon Conversation —
3:30pm – 4:30pm
Third Panel —
Networking & Adjournment
Space at this conference is limited, so register as soon as possible to assure yourself a seat. To avoid disappointment, please contact Chris Agar today to confirm your attendance at 212-832-7300 ext. 0 or firstname.lastname@example.org.
Please note that Capital Roundtable limits the number of registrants from a single firm to three.
Best Rate – Early Registration
Save $300 off the standard fee of $1,495 when you register by Friday, December 13. Just $1,195.
Save $200 of the standard fee! Register by Friday, January 3, 2020, and the fee for the conference is $1,295.
$1,495 increasing to $1,595 day of conference, space permitting.
$1095 each until Friday, January 3, 2020, when you register two or more people to attend from the same company. This rate increases to $1295 each after Friday, January 3.
You can pay by credit card (using the links above or below) or by check. Mail your check and business card to: New York Business Roundtable Inc., 747 Third Avenue, Suite 200, New York, NY 10017.
Can’t attend but want to hear the program? You can buy the audio package along with the handounts.
Past Attendees at Similar Conferences
Alliance Consumer Growth
American Express Co. Inc.
Balance Point Capital Partners
Blackstone Advisory Partners
Brown Gibbons Lang
Canaccord Genuity Inc.
Capital Growth Advisors
Carter Morse & Mathias
DeSilva + Phillips
Dohin Capital Group
Duke University School of Medicine
Ernst & Young
Fireman Capital Partners
First Atlantic Capital
Garrison Investment Group
GCA Savvian Advisors
Imperial Capital Group
J.C. Flowers & Co.
Lee Equity Partners
Midmarket Growth Partners
North Castle Partners
Red Door Spas Holdings
Sawaya Segalas & Co.
Senior Home Companions of Indiana
Silver Birch Tree Holdings
Stifel Investment Banking
Sumitomo Mitsui Banking
Wellness Innovations Network