Bain Capital Private Equity to invest in Sundial Brands

Bain Capital Private Equity has agreed to acquire a minority stake in Sundial Brands. No financial terms were disclosed. Demeter Group provided financial advice to Sundial Brands while Financo did likewise for Bain Capital. Goldman Sachs is providing financing for the transaction. Sundial is a maker of natural skin and hair products.

PRESS RELEASE

New York – September 2, 2015 – Sundial Brands, a natural skin and hair products manufacturer and maker of brands including SheaMoisture and Nubian Heritage, today announced the signing of a strategic partnership with Bain Capital Private Equity to grow the business and invest in product innovation, consumer engagement and its social impact model. Founder and CEO Richelieu Dennis will continue to lead the Company, and Sundial will remain majority family-owned and operated. Financial terms of the minority investment were not disclosed.

Founded in 1992, Sundial creates and manufactures beauty and personal care products with natural, certified organic and ethically sourced ingredients. Proudly pioneering its global model of social entrepreneurism called Community Commerce, Sundial creates opportunities for sustainable social and economic empowerment throughout its supply chain and communities in the United States and Africa, focusing on entrepreneurship, women’s empowerment, education and wellness. Sundial Brands proudly manufactures its eco-friendly products at the Company’s state-of-the-art facilities in Amityville, New York.

“This partnership will accelerate Sundial’s social entrepreneurship platform, support our multi-brand portfolio strategy – including investments in like-minded entrepreneurs and brands – and drive our transformative approach to serving New General Market consumers,” said Dennis. “Our consumers have always been partners with us, and our goal is to now build Sundial into a world-class, family-owned and operated consumer goods company of which they can be even more proud. We are excited to welcome Bain Capital as a valuable partner who shares our commitments to our communities globally and understands how our brand of social entrepreneurism can be enhanced to achieve our vision for growth and impact.”

Bain Capital Private Equity has a long track record of investing in and partnering with management teams to help grow companies. Its consumer and retail investments have included TOMS, Canada Goose, Bright Horizons Family Solutions, Bombardier Recreational Products, Sealy Corporation, Michaels Stores, Dunkin’ Brands, Domino’s, Bob’s Discount Furniture and Burlington Stores.

“Richelieu and his family have built an amazing business and community centered on the idea of the New General Market, an idea that is very well aligned with where we as consumers and as a country are headed. We could not be more excited to partner with Sundial Brands to continue to enhance this differentiated approach to innovation, social entrepreneurship and community engagement,” said Ryan Cotton, a Managing Director at Bain Capital. Deval Patrick, a Managing Director at Bain Capital and the former Governor of Massachusetts, played an active role in the investment and will join the Board of Directors of Sundial.

Demeter Group, a San Francisco-based investment bank for high growth premium consumer brands, acted as Sundial Brands’ exclusive financial advisor. Sheppard, Mullin, Richter & Hampton LLP and Squire Patton Boggs (US) LLP provided legal advice to Sundial. Financo served as financial advisor, Kirkland & Ellis LLP served as legal counsel, and PricewaterhouseCoopers served as accounting advisor to Bain Capital. Financing is being provided by Goldman Sachs.

For a list of Sundial’s “10 Key Reasons for Partnering with Bain Capital,” visit www.sundialbrands.com/news.

About Sundial Brands
Sundial Brands (www.sundialbrands.com), a leading skin care and hair care manufacturer is committed to making the highest quality products possible with natural, certified organic and ethically-sourced ingredients.

Widely credited with introducing the concept of the New General Market to the beauty and retail industries, Sundial founder and CEO Richelieu Dennis began the company in 1992 with his college roommate, Nyema Tubman, and his mother, Mary Dennis, shortly after graduating from college and being unable to return to his home country of Liberia because of civil war. From its humble beginnings selling products on the streets of New York City to distribution and co-creation of its flagship brands – including SheaMoisture and Nubian Heritage – with major retailers across the United States, Sundial is rooted in a commitment to community and a vision to fill unmet and underserved consumer needs. A certified B Corp company with a Fair for Life social and fair trade certification, Sundial engages in ethical and cruelty-free business practices and manufactures its products at its state-of-the-art facilities in Long Island, NY. Through its purpose-driven Community Commerce business model, the company creates opportunities for sustainable social and economic empowerment throughout its supply chain and communities in the United States and Africa, focusing on entrepreneurship, women’s empowerment, education and wellness.

In 2015, Sundial was named to the Inc. 5000 list of the fastest-growing private companies in the United States.

About Bain Capital Private Equity
Bain Capital, LLC (www.baincapital.com) is one of the world’s foremost private investment firms, with approximately $75 billion under management across several asset classes including private equity, venture capital, public equity, credit products and absolute return. Founded in 1984, Bain Capital’s more than 400 professionals are collectively the single largest investor in all of its funds and are dedicated to investing in and building its portfolio companies. Bain Capital Private Equity has a long history of investing in leading consumer and retail companies such as TOMS, Canada Goose, Bright HorizonsFamily Solutions, Bombardier Recreational Products, Sealy Corporation, Michaels Stores, Dunkin’ Brands, Domino’s, Bob’s Discount Furniture and Burlington Stores. Bain Capital has offices in Boston, New York, Chicago, San Francisco, Palo Alto, London, Munich, Dublin, Luxembourg, Tokyo, Shanghai,Hong Kong, Mumbai and Melbourne.