NEW YORK — E.l.f. Cosmetics is looking to get a lot bigger.
TPG Growth, the middle-market, growth-equity investment arm of TPG, has acquired a majority stake in the fast-growing value brand, with an eye on broadening the reach of E.l.f., especially on a global basis.
The investment firm purchased the business Friday from E.l.f.’s founders and TSG Consumer Partners LLC. Terms of the transaction were not disclosed, but reports suggested E.l.f. could fetch between $200 million and $300 million.
E.l.f., which is distributed in major mass doors such as Target, in its own freestanding unit in Manhattan and through its e-commerce site, has estimated annual sales of just more than $150 million, according to industry sources. The portfolio includes products for eyes, lips and face as well as tools and nail color, mostly priced less than $3. Despite its mass pricing, E.l.f. has established a reputation for innovation that company cofounder Joey Shamah hopes to extend upon under TPG.
“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 Shamah. “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.”
For TPG, E.l.f. brings a brand positioned in the value segment of the market with omnichannel expertise. “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 see opportunities for growth in a thoughtful way through expansion in key distribution channels and a push to make E.l.f. a global player. There is synergy with many of our businesses. We understand consumer, fashion and retail and can certainly help with distribution both domestically and on the international front.”
Shamah thought the time was right to take the business to the next level. “We were looking for a financial sponsor because we feel there is still growth in our tank,” he added in an interview with WWD just as the deal closed last week.
“TPG is a company that understands our business and can help us in key areas such as supply chain improvements and international distribution,” Shamah added. His goals include expanding beyond the 15,000 doors currently stocking the brand with a deeper push into discount chains, as well as drugstores, dollar stores and international retailers.
@chanel and @pharrell dropped what’s being dubbed as the world’s most exclusive sneakers yesterday. The Adidas Originals NMD Hu, which Williams designed in collaboration with Chanel and @adidasoriginals, has a waiting list of over 120K people who pre-registered online at chanelatcolette.fr –– and only 500 pairs are on sale. The singer predicted the resale value of the shoes could reach $40K. Read the full interview on WWD.com. Link in bio. #wwdfashion
@imanshumpert is diving deeper into his creative endeavors and relaunching his clothing line, Post 90s, and is helping to raise money for the hurricane victims in St. Maarten with a jersey he’s designed with his brother. The Cleveland Cavaliers player talked to WWD about kneeling during the national anthem, working with fashion brands and how he wants to be more than an @nba player. Read the interview on WWD.com #wwdfashion (📷: George Chinese)
Not only does #TheProfit return to CNBC tonight, but @marcuslemonis has launched @shopmarcus, a new shopping and lifestyle retail experience in Aspen and Chicago, with more locations to come. The retail stores offer in-store stylists and a variety of contemporary womenswear selections.
“It’s life, I’m going to face it,” @mingxi11 sighed. “I fell, but you know, I think the most important thing is that I get back up. I had the love, the help from my sister — the girl next to me Gizele [Oliveira] — she’s so nice. When I went backstage everybody was trying to comfort me like ‘Oh Ming, it’s OK.’ I’m really, really touched. I think it’s them who gave me the courage to go back on stage for the finale,” Xi told WWD of her fall at the @victoriassecret fashion show. (📷: David Fisher) #wwdfashion #vsfashionshow #victoriassecret
@louisvuitton tapped @therealpeterlindbergh for its latest city-centric photo book, which is part of a series called Fashion Eye. The primarily black and white book captures the spirit of Berlin in 57 images shot between 1989 and 2019. “Berlin is an inspiration for me, more than a city. I mean @millajovovich is simply Berlin!” said Lindbergh. #wwdfashion
“You know, I think audiences expect a certain performance so I have to deliver to them what they’re expecting to a certain degree. But I’m also a different actor and a different person, I have my own spin on the character,” says @noahegalvin of his takeover of the leading role in “Dear Evan Hansen” following the departure of @bensplatt, who originated the role. Read WWD’s interview with the 23-year-old actor on WWD.com #wwdeye (📷: @jilliansollazzo)
For pre-fall 2018, @etro created richly-colored wonderland, using tapestries, textiles and wallpapers from the Eastern world at large. The line featured floral and graphic prints and jacquard motifs, like this two-piece look featured here. #wwdfashion (📷: Giovanna Pavesi)
@kith is moving into children’s. The men’s and women’s streetwear brand has launched Kidset, a Kith kids line located in New York at 64 Bleecker Street. The line includes mini versions of staple Kith pieces like the Astor bomber jacket and the Kith box logo sweatshirts, along with a wall that can display up to 120 pairs of shoes from @adidas, @newbalance, @timberland and more. #wwdfashion
“I just wanted to create this fully rounded character, but I do think what excited me most was just the opportunity to give a group of people representation that I feel needs it. I like to do characters in projects that stand for something and Karolina definitely does, so that was really exciting to me,” @ginnygardner says of her new role in @hulu’s “The Runaways.” Gardner plays Karolina Dean, a queer superhero, which is a rarity for @marvel. Read more about Gardner’s character on WWD.com #wwdeye (📷: @dandoperalski)