Investment bank Goldman Sachs is within weeks of finalizing an agreement to sell Perricone MD, while Financo is fielding interest for E.l.f. Cosmetics, according to sources.
The first half was relatively slow for beauty dealmakers after potential changes to the tax law pushed a raft of deals into the fourth quarter last year. But now strategic and financial buyers are getting back down to business — the one caveat is that many of the companies that are being bandied about have been in play for some time and have yet to make a connection.
“It is a pretty robust market for beauty,” said Arash Farin, vice president at investment bank The Sage Group, noting the sector has seen about 17 deals so far this year. “For the right growth story and the right management team, there’s an abundance of capital, making it an opportune time for certain companies to explore liquidity alternatives.”
Farin said the market still wasn’t at the “fever pitch” it experienced in the fourth quarter, but that it had “rebounded significantly.
“The lending markets are back in a pretty strong way,” he said. “The stock market’s performing very nicely and, in our universe, very few companies have not done well this year. There are many companies that are small and nimble and the L’Oréals out there are always looking for companies with sound technologies which also offer footprints in new or desirable locations.”
Perricone’s founder, Dr. Nicholas Perricone, declined to comment, as did Joey Shamah, chief executive officer and a founder of E.l.f.
TSG Consumer Partners holds a majority stake in Perricone and is a minority investor at E.l.f. A spokeswoman for the private equity firm and a spokesman for Goldman declined to comment Monday. Financo could not be reached.
Perricone founded his company in 1997 with an approach to help repair damaged skin with nutrient antioxidants in cosmeceutial formulations. The company sells a range of products — from moisturizers and foundations to facelifts and supplements — and introduced the OVM antiaging cream on QVC this summer. The dermatologist used eggshell membrane as his starting point for the proprietary Bio-Matrix Technology in the cream, a 2-oz. jar of which retails for $165.
Sources said E.l.f. hired Financo last year after it was approached for a buyout. The bank was kept on and has been taking bids from would-be buyers. The company is believed to have revenues of $110 million and earnings before interest, taxes, depreciation and amortization of about $25 million.
The digitally savvy E.l.f. was founded in 2004, finding its initial success online with beauty products priced at $1, $3 and $5.
Despite signs of a recent pickup in beauty M&A, Elsa Berry, founder of Vendôme Global Partners, said the last two years have been “kind of ho-hum” in the luxury beauty space, with many companies sitting on the market for extended periods or never selling.
Breaking News: @louisvuitton's men's artistic director @mrkimjones is leaving the French fashion house after nearly 7 years. Jones joined Louis Vuitton in 2011, following a three year tenure as creative director of British luxury goods brand Alfred Dunhill. Jones is to exit Louis Vuitton after showing his fall 2018 collection for the brand in Paris on Thursday. Read the full exclusive story on WWD.com. Link in bio. #wwdnews #wwdfashion
For men’s fall 2018, @giuseppezanotti drew on elements from streetwear, sport, biker, combat and rock ‘n’ roll. Pictured here are a pair of shoes from the collection, featuring zippers, rhinestones, and silver hardware. Head to WWD.com to see a roundup of the accessories from Milan’s men’s fall 2018 shows. #wwdfashion (📷: Andrea Delb)
To celebrate the 25th anniversary of @ralphlauren’s snowboarding collection, the brand is mining its archives. The iconic brand is reintroducing vintage styles and dropping new designs for a color capsule that will be available in Ralph Lauren stores and @openingceremony on January 25. The capsule will consist of 10 pieces, including the Snow Beach Pullover, pictured here, which is a collector’s item that rapper Raekwon wore in Wu-Tang Clan’s “Can It Be All So Simple” video. #wwdfashion (📷: Tom Gould)
For @rochasofficial’s pre-fall 2018 collection, creative director Alessandro Dell’Acqua channeled the sophisticated and intriguing Catherine Denevue in the film “Belle de Jour.” Polished collarless coats, midi skirts, suits and ’60s graphic motifs were all featured in the collection, adding a sense of discreet luxury. See the rest of the photos on WWD.com #wwdfashion
“We tried to produce clothing of that couture quality, but the most daunting part was that we only had a matter of days [to do it],” said costume designer Lou Eyrich, who recreated Gianni Versace’s iconic looks for @americancrimestoryfx. Eyrich searched online retailers and vintage shops for original pieces from the design house and for @penelopecruzoficial, who plays Donatella Versace. Head to WWD.com to read how she created the Versace world. #wwdfashion
Only three months after her stellar debut catwalk season, @kaiagerber has inked her first big design collaboration –– with @karllagerfeld. The collection blends Lagerfeld’s Parisian chic aesthetic and the model’s signature West Coast casual style via RTW, accessories, footwear and more. The #KarlLagerfeldxKaia collection will launch in September with a series of events. Get all the details on WWD.com. #wwdnews #wwdfashion
Harrods plans to remove the famous statue of Princess Diana and Dodi Al Fayed from the bottom of the Egyptian escalators and hand it back to Mohamed Al-Fayed. “We are very proud to have played our role in celebrating the lives of Diana, Princess of Wales and Dodi Al Fayed at Harrods and to have welcomed people from around the world to visit the memorial for the past 20 years,” said Michael Ward, Harrods managing director. “With the announcement of the new official memorial statue to Diana, Princess of Wales at Kensington Palace, we feel that the time is right to return this memorial to Mr. Al Fayed and for the public to be invited to pay their respects at the palace.” More on the news, with reporting by @loreleimarfil, at WWD.com. #wwdnews