Social media-savvy makeup brand Anastasia Beverly Hills has sold a minority stake to private equity firm TPG Capital. In December the brand hired Imperial Capital to conduct a sale process, which attracted interest from private equity firms and beauty conglomerates.
WHO: Romanian-born beauty entrepreneur Anastasia Soare launched her namesake brand with a Beverly Hills flagship salon in 1997, with the company’s first product line following in 2000. Since launching the brand, Soare has created an entirely new category in cosmetics—eyebrows—centered around her revolutionary brow-shaping technique, the patented Golden Ratio Eyebrow Shaping Method. In addition to brows, Soare and her daughter, Claudia Soare, have expanded their product set into the eyes, face, and lips categories. ABH products are available at anastasiabeverlyhills.com, Dillard’s, Macy’s, Nordstrom, Sephora, ULTA, and select retailers in over 25 countries. ABH is committed to cruelty-free product formulation, testing, and development.
TPG is a leading global alternative asset firm founded in 1992 with more than $82 billion of assets under management and offices in Austin, Beijing, Boston, Dallas, Fort Worth, Hong Kong, Houston, London, Luxembourg, Melbourne, Moscow, Mumbai, New York, San Francisco, Seoul, and Singapore. TPG’s investment platforms are across a wide range of asset classes, including private equity, growth venture, real estate, credit, and public equity. TPG’s previous beauty investments (made through TPG Growth) include E.l.f. Cosmetics, which the firm took public in 2016, and Beautycounter.
WHY: The brand plans to use its capital to fund global expansion and ramp up direct-to-consumer sales.
IN THEIR OWN WORDS: “It has been incredible to watch Anastasia Beverly Hills evolve,” said Anastasia Soare, founder and CEO of Anastasia Beverly Hills. “With the help of my daughter, Claudia, what started as a singular brow studio in Beverly Hills has gone on to become one of the fastest growing companies in today’s global beauty industry. Claudia and I are extremely excited to announce our partnership with TPG. This is the next step in Anastasia Beverly Hills’ evolution. Their minority stake in the company will allow us to reach even more of our loyal fans across the globe.”
“Anastasia, Claudia, and their team have successfully built an authentic, high-growth, and innovative brand that deeply resonates with consumers,” said Paul Hackwell, Partner at TPG Capital. “As investors, we are excited by the opportunity to partner with dynamic entrepreneurs like Anastasia and Claudia to bring their vision to the next level. We are impressed by the company’s differentiated product offering and strong consumer advocacy, and look forward to working closely with management to further accelerate growth.”
- Anastasia Beverly Hills has sold a minority stake to private equity firm TPG Capital.
- Terms of the transaction were not disclosed.
- According to WWD, industry sources said that Anastasia was being valued at as much as $3 billion. They also indicated that Anastasia Beverly Hills has faced declines in growth in recent months, along with the entire sector.
- In December WWD reported the company had hired Imperial Capital to conduct a sale, the business was said to have $200 million in earnings before interest, taxes, depreciation and amortization, and $340 million in sales.
- The companies did not disclose financial terms, but media reports value the brand at $3 billion, representing a multiple of nine times it has reported $340 million in net sales.
- Imperial Capital acted as financial advisor to Anastasia Beverly Hills.
- Goldman Sachs & Co. LLC, RBC Capital Markets, UBS Investment Bank, and Deutsche Bank acted as financial advisors to TPG and are providing financing for the transaction.
- Kirkland & Ellis served as legal advisor to Anastasia Beverly Hills.
- Ropes & Gray served as legal advisor to TPG.
Photo credit: www.anastasiabeverlyhills.com