Hatchbeauty cofounder Ben Bennett has resigned and sold his stake in the company to British private equity firm Lion Capital, WWD has learned.
Bennett, Hatchbeauty and Lion Capital could not be reached for comment. Terms of the deal were not disclosed.
The deal marks a new phase of growth for Hatchbeauty, a statement the company released today said, spearheaded by chief executive officer Tracy Holland, and the funds will be used to invest in new leadership hires.
Los Angeles-based Hatchbeauty, which develops and manufactures beauty and wellness brands, was founded by Bennett as Bennett Kreative in 2009 — shortly after, he merged his business with Holland’s Bravo Port Retail Management and the two renamed the company Hatchbeatuy. Hatchbeauty makes a mix of private label and owned brands, often in partnerships with retailers or backed by famous names. Brands the company has incubated include Orlando Pita Play, Kristofer Buckle’s makeup line, Jenna Hipp nail polish, Found Beauty at Walmart and Salma Hayek’s Nuance.
The deal comes after what may have been a tumultuous year at Hatchbeauty. In May, an anonymous Instagram account, said to be created by Hatchbeauty employees, surfaced, reporting turmoil inside the company. The account is now set to private mode.
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In 2016, WWD reported industry estimates that Hatchbeauty does between $100 million and $200 million in retail sales annually.
Lion Capital is a consumer-focused private equity firm with offices in London and Los Angeles. Recent deals include Paige Denim and Authentic Brands Group.