Pat McGrath Labs has received a $60 million minority investment from Eurazeo Brands. According to WWD, industry sources said the firm is estimated to have taken a 5 to 8 percent stake in the business at a valuation of more than $1 billion.
WHO: Pat McGrath launched the Pat McGrath Labs makeup line in October 2015 with a limited-edition launch of 1000 Gold 001, a $40 gold, multipurpose pigment that sold out in six minutes. This initiated a series of product drops that McGrath orchestrated during the lead-up to the broader collection launch in September 2017. Pat McGrath Labs products are currently available on the brand website, as well as 54 Sephora stores and their website. The brand will expand to 90 Sephora stores in the fall.
Eurazeo Brands aims to invest a total of $800 million in high-potential US and European consumer companies with differentiated brands across a wide range of verticals including beauty, fashion, home, wellness, leisure, and food. Eurazeo Brands partners with visionary founders and strong management teams to drive value creation by leveraging Eurazeo’s brand building and operating expertise, as well as its global network, with offices across four continents. Pat McGrath Labs is the firm’s second beauty brand investment, following a majority investment in Nest Fragrances in November.
IN THEIR OWN WORDS: “There will be acceleration,” McGrath said to WWD. “We’re having incredible success and [in terms of] wanting to expand the brand in the U.S. as well as expanding demand worldwide—we’ve got a lot of fans all over the world asking for this. That’s what’s going to be incredible about working with Eurazeo…to see the distribution grow.”
“We are honored to be working with Pat, whose vision, talent and trailblazing history in the beauty industry have set Pat McGrath Labs up to be one of the most authentic and innovative makeup brands to ever come to market,” Jill Granoff, chief executive of Eurazeo Brands, said in a statement.
