Shaun Westfall, one of beauty’s busiest investment bankers, is moving to Jefferies, according to several financial sources.
Westfall has been working at Minneapolis, Minn.-based Piper Jaffray for about a decade, orchestrating a slew of beauty deals. In 2016 alone he’s worked on a handful of high-profile transactions, including L’Oréal’s acquisition of It Cosmetics for $1.2 billion (a 6.1 times multiple) and Estée Lauder’s purchase of Becca Cosmetics, which sources said was for about $230 million. Westfall also worked on E.l.f. Beauty’s September initial public offering, as well as TA Associates’ investment in Paula’s Choice (sources estimate that was a $275 million deal). He worked on General Atlantic’s 2015 acquisition of Too Faced for a source-estimated $500 million. That brand is now being sold to Estée Lauder for $1.45 billion. Westfall also sold NYX and Urban Decay to L’Oréal.
For New York-based Jefferies, which is owned by Leucadia National Corp., the move could build up the bank’s beauty M&A practice. In 2007, when the firm hired James Walsh as a managing director, Jefferies put out a statement that he would be in charge of the “continued build-out of the consumer and retail team.” Walsh is now chairman of consumer and retail investment banking at the firm. When asked about Westfall, a spokesman for Jefferies declined to comment. Sources said Westfall starts at Jefferies in January.
Jefferies’ consumer and retail practice includes about 25 professionals and has advised on more than 50 deals valued at more than $52 billion since 2012, according to its web site.
M&A is booming in the beauty world. Recently, Coty closed its $11.4 billion purchase of the Procter & Gamble specialty beauty portfolio, which included 41 different beauty brands. Coty also agreed to buy GHD, a hair tools company, for about $510 million. Shiseido has also been active in the space, picking up Laura Mercier and ReVive in one transaction, and the license for Dolce & Gabbana fragrances in another. In the private equity world, Tengram Capital Partners bought skin-care brand Algenist, and Roark Capital Partners invested in Drybar.