L’Oreal to acquire TSG-backed IT Cosmetics for $1.2 bln

L’Oreal has agreed to buy makeup and skincare brand IT Cosmetics, which is backed by TSG Consumer Partners. The price of the acquisition is $1.2 billion. Goldman Sachs, Piper Jaffray & Co and Financo LLC provided financial advice to TSG on the transaction. UPDATE: J. Mark Metts, Christopher Glass and Katy Lukaszewski of Sidley Austin LLP provided legal advice to the sellers. Lazard was the financial adviser to L’Oreal while Ellen Odoner of Weil, Gotshal & Manges LLP was their attorney.

PRESS RELEASE

San Francisco, CA– July 22, 2016 – TSG Consumer Partners LLC (“TSG”), a leading strategic equity investor in high-growth consumer brands, today announced that L’Oréal has entered into a definitive agreement to acquire IT Cosmetics™, a top-selling prestige makeup and skincare brand, for $1.2 billion. TSG acquired a minority interest in the company in 2012 from founders Jamie Kern Lima and Paulo Lima.

IT Cosmetics™ creates clinically proven, innovative, problem-solving makeup and skincare products that harness cutting-edge, anti-aging technologies and high-performance skin-loving ingredients to provide serious beauty solutions.
Jamie Kern Lima, Co-Founder of IT Cosmetics™, said, “At IT Cosmetics, we truly believe every woman is beautiful and we create products that are not only game-changing in the beauty industry, but are life-changing for real women everywhere. Our incredible growth trajectory to date is in large part thanks to our extremely talented team at IT Cosmetics, our passionate customers who call themselves IT Girls, and our incredible partners including TSG. Partnering with TSG was one of the best decisions we made in our journey and their strategic support these past few years, along with their unwavering encouragement of Paulo and me to pursue the vision we have for this company, has been invaluable. As we gear up for this next chapter in our company’s story, I know that TSG’s mark will prove to be indelible.”

Blythe Jack, Managing Director at TSG, said, “It has been extraordinary to work Jamie and Paulo. Over the last four years, IT Cosmetics has become one of the fastest-growing beauty companies in the world. We have no doubt that IT Cosmetics will continue on this successful trajectory with the resources and guidance that L’Oréal will provide.”

Diane Miles, Operating Partner at TSG, said, “IT Cosmetics’s products are truly one-of-a-kind and the Company’s success proves that consumers absolutely recognize that. It’s been exciting to work with IT Cosmetics to help build their team and assist in the launch of unique new products that have been embraced by consumers throughout the world.”

The transaction is subject to customary closing conditions and regulatory approval.

Goldman, Sachs & Co., Piper Jaffray & Co., and Financo, LLC, served as financial advisors and Sidley Austin LLP served as legal counsel to the sellers.

About TSG Consumer Partners
TSG Consumer Partners, LLC is a leading investment firm with approximately $5 billion of assets under management, focused exclusively on the branded consumer sector. Since its founding in 1987, TSG has been an active investor in the food, beverage, restaurant, beauty, personal care, household and apparel & accessories, and e-commerce sectors. Representative past and present partner companies include vitaminwater, thinkThin, popchips, Muscle Milk, Yard House, Stumptown, Pabst, Planet Fitness, REVOLVE, PAIGE, Smashbox Cosmetics, Pureology, Sexy Hair, e.l.f. cosmetics and IT Cosmetics. For more information please visit www.tsgconsumer.com.