Linden Capital Partners and DW Healthcare Partners have taken over facial device business Edge Systems.
Edge, headquartered in Signal Hill, Calif., makes and sells the devices that are used in the HydraFacial, which aims to remove dead skin cells and replenish skin with nutrients without down time. The machine is installed in high-end resorts, spas, dermatologists’ offices and plastic surgeons’ offices in more than 75 countries. The business has more than tripled since the 2012 investment from private equity firms Weston Presidio and Main Post Partners.
While Linden Capital and DW Healthcare recapitalized Edge, specific terms of the deal were not disclosed.
“When Roger Ignon and I founded Edge nearly 20 years ago, our background was in the B2B aspect of medical aesthetics. Weston [and] Main Post brought us their expertise with national branding and consumer awareness … We have been able to disrupt and become a global leader within the skin health and wellness market,” said founder and president Bill Cohen.
Roger Ignon, cofounder and head of research and development at Edge, added, “We are proud of all that we have been able to accomplish and, with the strategic support from our partners and the outstanding work of our team, we are poised to take the business to even higher heights during this next phase of growth.” As it stands, about a third of the company’s business comes from international markets, which may be an area of expansion in the future.
“Our goal is to identify high potential growth companies with an opportunity to build best in class businesses, and Edge has become an industry leader in skin treatment services,” said Jeff Mills, managing partner at Main Post.
“When we invested, this was a business founded by engineers who came out of the surgical equipment space – they saw the power of the beauty sector,” said Mills. The HydraFacial treatment “exploded during the downturn,” Mills said. “Basically, the demand for facelifts dried up because people couldn’t afford them … that’s when Botox and fillers and injectables took off, [as well as] things like the HydraFacial … people are going away from cutting and really trying to take care of their skin.”
Piper Jaffray & Co. and BMO Capital Markets acted as financial advisors to the sellers, while Morrison & Foerster LLP provided legal advice.