This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

TSG Shops Beauty Brands in Hot Sector

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 - Get Report) and consumer products group Helen of Troy (HELE - Get Report).

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 - Get Report) 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.

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
COTY $24.21 -0.25%
HELE $80.74 -0.92%
JNJ $99.15 -1.44%
AAPL $124.25 -0.14%
FB $81.66 -0.67%


DOW 17,698.18 -77.94 -0.44%
S&P 500 2,059.69 -8.20 -0.40%
NASDAQ 4,880.2280 -20.6570 -0.42%

Partners Compare Online Brokers

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs