Lee Equity has acquired beauty manufacturing business Cosmetic Solutions for an undisclosed amount.
Cosmetic Solutions makes skin-care, hair-care and body-care products. The company offers either standard or custom formulations, and handles manufacturing for more than 1,000 emerging and established brands. The company has a 95,000-square-foot research and development facility in Boca Raton, Fla.
The deal should allow Cosmetic Solutions to “meet the increasing market demand,” said Warren Becker, chief executive officer. In addition to formulation and manufacturing, the company provides packaging, creative design, marketing, education and delivery services. The Sage Group advised Cosmetic Solutions on the deal.
Lee Equity is a New York-based private equity firm that generally invests between $50 million and $100 million for a controlling stake in businesses. The firm also backs InterLuxe, a fashion and luxury brand platform.
In the beauty M&A world, manufacturing deals are becoming increasingly popular.
In August, Elkem ASA said it would Basel Chemie for $26.9 million. Earlier this year, Bain Capital bought a majority stake in Maesa, the beauty incubator behind many retail private-label beauty lines as well as the Kristin Ess and Flower Beauty brands. Mana, a New York-based manufacturer, is also exploring potential sale options, the company confirmed to WWD.
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