TPG Growth Acquires a Majority Stake in e.l.f. Cosmetics
FORT WORTH, Texas, February 3, 2014-- TPG Growth, the middle market and growth equity investment platform of TPG, announced today that it has acquired a majority stake in e.l.f. Cosmetics, one of the fastest growing cosmetics brands in the U.S. from Company founders and TSG Consumer Partners LLC, a leading strategic equity investor in high-growth brands. Existing management will continue to have a meaningful investment in and an ongoing role with the company. Terms of the transaction were not disclosed.
e.l.f. Cosmetics occupies a unique niche in the color cosmetics space, providing high-quality cosmetics, tools and accessories at compelling values. Combining strong digital capabilities and insights to deliver innovative products to consumers, the Company has created a strong online presence and has become a valuable partner to world-class retailers.
“Through its differentiated approach, e.l.f.’s offering has resonated among a key segment of the cosmetics market,” said John Bailey, Principal at TPG Growth. “We believe that many opportunities lie ahead, and are happy to partner with e.l.f. to build the Company and accelerate its already impressive growth trajectory.”
“Our team is proud of what we have built and are extremely excited to have a value-added partner like TPG Growth to help us scale the business,” said Joey Shamah, co-founder of e.l.f. Cosmetics. “Their track record in building consumer businesses, international distribution relationships, e-commerce capabilities, global operational resources and access to incremental talent make them an ideally suited partner for our Company. We are very excited to build upon our strong foundation and deliver even more value to our consumers and retail partners.”
“The growth of e.l.f. Cosmetics has been phenomenal, and TSG is fortunate to have been partnered with such an exciting company,” said Jennifer Baxter Moser, Managing Director at TSG Consumer Partners. “We look forward to watching the brand continue to grow and develop in the future,” she added.
Legal advice was given to TPG Growth by Kirkland and Ellis LLP. TSG Consumer Partners received legal advice from Sidley Austin LLP; e.l.f. was advised by Sills Cummis & Gross P.C. Financo served as exclusive financial advisor to e.l.f. Cosmetics and TSG Consumer Partners.
About e.l.f. Cosmetics
e.l.f. is one of the most exciting and innovative companies in the beauty industry. Founded in 2004, e.l.f. began primarily as an online retailer (www.eyeslipsface.com) giving it a unique digital presence and establishing it as an online beauty authority. e.l.f.’s digital success influenced several large retailers to adopt the brand and the company now has permanent in-line displays and seasonal placement in many major mass retailers. e.l.f. has become one of the fastest growing cosmetics brands in the U.S. with its multi-channel distribution strategy, strong digital and social presence, and an integrated global supply chain operation.
About TPG Growth
TPG Growth is the middle market and growth equity investment platform of TPG, the global private investment firm. With $3.6 billion under management, TPG Growth targets investments in a broad range of industries and geographies, utilizing leveraged buyout, growth equity, and private investment in public equity (PIPE) structures. The firm is backed by the resources of TPG, which has $55.7 billion of assets under management. TPG Growth has offices in the United States, China and India. For more information, visit www.tpggrowth.com.
About TSG Consumer Partners LLC
TSG Consumer Partners LLC is a leading investment firm with over $2.9 billion in equity capital under management, focused exclusively on the branded consumer sector. Since its founding in 1987, TSG has been an active investor in the food, beverage, restaurant, beauty, personal care, retail, pet care, household and apparel & accessories sectors. Representative past and present partner companies include vitaminwater, Smart Balance, popchips, Muscle Milk, Yard House, Smashbox Cosmetics, Pureology, Planet Fitness and Alexis Bittar. For more information please visit TSGConsumer.com.
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