NEW YORK (The Deal) -- TSG Consumer Partners is still shopping its beauty brands, but has switched strategies and is trying to sell the brands separately instead of as one business, according to sources.
The San Francisco-based private equity firm has hired investment bank Financo to shop JA Cosmetics' EyesLipsFace Cosmetics, or e.l.f., while Duff & Phelps has been mandated to sell skin care brand Pevonia International. Goldman Sachs is sending out books on another skin care company NW Perricone MD, sources said.
Goldman Sachs is also shopping TSG's hair care brands - Kenra Professional, Alterna and Sexy Hair Concepts.
The private equity firm could not immediately be reached for comment.Strategics first began voicing interest in the beauty brands in mid-2012, The Deal previously reported, including beauty giant Coty (COTY) and consumer products group Helen of Troy (HELE). It was early in 2013 that the businesses were officially put on the block. At the time, Goldman Sachs was hired to sell all the brands together as one company, sources said. But TSG then decided to split up the auction into separate processes, the sources added. A number of private equity-related middle market deals in the personal care sector are likely to come to fruition in 2014, as The Deal previously reported. Additional beauty brands up for sale include Catterton Partners' anti-aging product maker StriVectin, which is also being shopped by Goldman Sachs. Sources previously had put StriVectin's Ebitda at around $25 million. Encore Consumer Capital-owned Tarte Cosmetics and San Francisco Equity Partners-owned Yes To also continue to search for buyers, sources said. In addition, Moelis Capital Partner's Dr. Fresh, which bought Johnson & Johnson's (JNJ) Reach toothbrush business in late 2012, and TSG's DenTek Oral Care, are two oral care business that could be acquired in 2014, sources said. Strategic acquirers such as L'Oreal, Estee Lauder (EL), Kao Corp., Shiseido Co., Unilever (UN), Johnson & Johnson and Procter & Gamble (PG), may also be a factor in the M&A beauty scene along with financial sponsors. Auctions of beauty and personal care brands, however, are not necessarily quick processes. One of TSG's big success stories, Smashbox Beauty Cosmetics Inc., was on the auction block for three years before it finally sold to Estee Lauder for $200 million to $300 million in May 2010.
Select the service that is right for you!COMPARE ALL SERVICES
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
- Real Money + Doug Kass Plus 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV