Eurazeo has acquired a majority stake in New York-based NEST Fragrances, a maker of luxury fragrances for the bath, body and home, for about $70 million. The seller was Tengram Capital Partners.
Eurazeo, a leading global listed investment company based in Paris and New York with ~$8 billion in assets under management, is pleased to announce a majority investment in NEST Fragrances in partnership with Founder and Executive Chairman Laura Slatkin. This marks the debut investment for Eurazeo Brands, the firm’s fifth investment division launched in May 2017 to invest in consumer and retail brands with global growth potential.
NEST Fragrances was founded in 2008 by Slatkin, a successful fragrance entrepreneur, and is now regarded as a leader within both the growing premium home fragrance and fine fragrance categories. Based in New York, the company offers a collection of over 30 home and fine fragrances sold in luxury department stores, leading specialty retailers and upscale boutiques, as well as on QVC and nestfragrances.com. NEST has experienced strong sales growth over the last five years and is poised for expansion in both the beauty and home categories. Slatkin will continue in her role as Founder and Executive Chairman and Nancy McKay will continue to be Chief Executive Officer of NEST Fragrances.
“We are delighted to partner with Laura and Nancy to accelerate NEST’s growth across product categories, channels and geographies,” said Jill Granoff, CEO of Eurazeo Brands. “The company’s successful track record to date and global growth prospects make NEST Fragrances the ideal first investment for Eurazeo Brands. NEST has developed a very strong brand that resonates with a broad consumer base driven by its compelling fragrances, distinctive packaging and accessible luxury positioning.”
Eurazeo Brands aims to invest a total of $800 million in high potential U.S. and European consumer companies with differentiated brands across a wide range of verticals including beauty, fashion, home, wellness, leisure and food. The goal is to partner with strong management teams and drive value creation by leveraging Eurazeo’s brand building and operating expertise, as well as its global network with offices in New York, Paris, Shanghai and Sao Paulo.
“Eurazeo Brands is the optimal partner for the growth of our business,” said Nancy McKay, CEO of NEST Fragrances. “We are very proud of our momentum thus far, and our evolution to a true lifestyle brand with strong self-purchase and gifting components. With Eurazeo’s retail and brand building expertise and extensive international reach, we are well equipped to scale and expand our core business built on superior quality and luxury experiences.”
The firm’s majority investment, along with a minority investment from Slatkin, will be used to diversify product offerings, build consumer awareness and expand across retail and digital channels to meet the demands of an existing loyal customer base and increase access to global consumers.
“The chemistry and shared vision with Eurazeo was undeniable,” added Slatkin. “Our new partnership brings together seasoned experts, many with over 25 years of experience in developing global luxury brands. I have tremendous respect for Jill Granoff and Virginie Morgon, Eurazeo’s Deputy CEO, and we are excited to tap into their expertise for our next chapter of growth.”
The company was acquired from Tengram Capital Partners and the deal closed on November 29. Eurazeo Brands invested approximately $70 million for a substantial majority investment in the company.
NEST Fragrances is a leading designer, manufacturer and marketer of luxury fragrances for the bath, body and home. Founded in 2008 by fragrance authority Laura Slatkin, today NEST Fragrances produces more than 20 home fragrance collections consisting of luxury scented candles in several sizes, reed diffusers, liquid soap and hand lotion. In 2012, the company launched the NEST Fine Fragrances Collection, which today consists of eight fragrances available in eau de parfum sprays and roller balls and luxury body cream. NEST Fragrances products are sold primarily in North America through a growing wholesale customer network of luxury specialty department stores, beauty product stores, boutique stores and spas, and the company’s online flagship store NESTFragrances.com.
With a diversified portfolio of approximately $8 billion in assets under management, of which $1 billion from third parties, Eurazeo is a leading global investment company with offices in Paris, Luxembourg, New York, Shanghai and Sao Paulo. Its purpose and mission is to identify, accelerate and enhance the transformation potential of the companies in which it invests. The firm covers a broad spectrum of private equity strategies through its five business divisions – Eurazeo Capital, Eurazeo Croissance, Eurazeo PME, Eurazeo Patrimoine and Eurazeo Brands. Its solid institutional and family shareholder base, robust financial structure, and flexible investment horizon enable Eurazeo to support its companies over the long term. As a global long-term shareholder, the firm offers deep sector expertise and a gateway to global markets, and enables the transformational growth of its companies.
Eurazeo is listed on Euronext Paris.