LONDON — Palamon Capital Partners said it has purchased a majority stake in Feelunique.com, an online retailer of premium beauty products, in a deal valuing the company at 26 million pounds, or $41.6 million at current exchange rates.
Palamon said in a statement it would provide further capital to support the company’s growth plan. Sirius Equity will invest alongside Palamon, and its co-founders Robert Bensoussan and Jim Sharp will join the e-tailer’s board of directors. Bensoussan will take up the role of chairman while Sharp will become a non-executive director.
Bensoussan is also chairman and investor in L.K. Bennett and a board member of Inter Parfums.
“We are pleased to have the opportunity to partner with founders, Aaron Chatterley and Richard Schiessl, and to welcome Robert Bensoussan and Jim Sharp to the board,” said Dan Mytnik, partner at Palamon.
“The expertise of Robert and Jim in the luxury branded sector will be invaluable in taking the business to the next level,” he added.
The statement said the private equity firms’ investment stems from the strong underlying growth in the on-line beauty retail segment, driven by the increasing shift in consumer spend to on-line, as occurred in the fashion retail sector.
“Feelunique is also taking significant market share by progressively expanding its product range and increasing loyalty through its customer-centric model. This has driven growth in company sales by more than 40 percent per year to more than 30 million pounds, or $48 million in annual revenue,” the statement said.
Feelunique sells hair care, skincare, cosmetics and fragrances, from major brands including Dior, Lancôme, Clarins, Guerlain, Yves Saint Laurent, Benefit, and Kerastase.
The company was founded in 2005, and employs more than 125 staff at its headquarters and logistics center in the Channel Islands.