The sale of NEST Fragrances represents the third portfolio company exit in 12 months for Tengram and the first branded beauty deal for Eurazeo.
WHO: NEST Fragrances was founded in 2008 by fragrance authority Laura Slatkin. Today, NEST Fragrances produces more than 20 home fragrance collections consisting of luxury scented candles, reed diffusers, liquid soap, and hand lotion. In 2012, the company launched the NEST Fine Fragrances Collection, which today consists of eight fragrances available in eau de parfum sprays, roller balls, and luxury body cream. The brand’s distribution is primarily in North America through a growing wholesale customer network of luxury specialty department stores, beauty product stores, boutique stores and spas, and the company’s website.
Eurazeo is a leading global listed investment company based in Paris and New York with a diversified portfolio of approximately $8 billion in assets under management. The firm covers a broad spectrum of private equity strategies through its five business divisions±Eurazeo Capital, Eurazeo Croissance, Eurazeo PME, Eurazeo Patrimoine, and Eurazeo Brands. NEST Fragrance marks the debut investment for Eurazeo Brands, the firm’s fifth investment division launched in May 2017 to invest in consumer and retail brands with global growth potential.
Tengram Capital Partners is a private equity firm that invests in companies in the branded consumer products and retail space and acts as a catalyst to drive growth. Its current beauty portfolio includes Algenist, specialty beauty retailer Cos Bar, and natural beauty brand This Works. Prior investments include DevaCurl and Laura Geller Beauty.
WHY: The firm’s majority investment, along with a minority investment from Slatkin, will be used to diversify product offerings, build consumer awareness and expand across retail and digital channels.
IN THEIR OWN WORDS: Matthew Eby, co-founder and Managing Partner of Tengram, commented in a release, “NEST is an incredibly strong and dynamic brand that enjoys a fervent and loyal consumer following. NEST’s stunning growth story would not have been possible without the hard work and expertise of Nancy and the entire NEST team, who transformed the brand Laura founded almost a decade ago into one of the most recognizable and respected independent luxury fragrance brands. We are proud to have been part of the evolution of the Company from a predominately private-label business to a market-leading brand in the home and fine fragrance categories. Eurazeo Brands will make a great future partner for NEST.”
“We are delighted to partner with Laura and Nancy to accelerate NEST’s growth across product categories, channels and geographies,” said Jill Granoff, CEO of Eurazeo Brands. “The company’s successful track record to date and global growth prospects make NEST Fragrances the ideal first investment for Eurazeo Brands. NEST has developed a very strong brand that resonates with a broad consumer base driven by its compelling fragrances, distinctive packaging, and accessible luxury positioning.”
“The chemistry and shared vision with Eurazeo was undeniable,” added Slatkin. “Our new partnership brings together seasoned experts, many with over 25 years of experience in developing global luxury brands. I have tremendous respect for Jill Granoff and Virginie Morgon, Eurazeo’s Deputy CEO, and we are excited to tap into their expertise for our next chapter of growth.”
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