Gryphon buys skincare brand RoC

Gryphon Investors has acquired New York City-based RoC, an anti-aging skincare brand from Johnson & Johnson Consumer Inc. No financial terms were disclosed. Sawaya Partners LLC was financial adviser to Johnson & Johnson on the transaction while Luc-Henry Rousselle at LSH Partners did likewise for Gryphon.

PRESS RELEASE

January 22, 2019 (San Francisco) – Gryphon Investors (“Gryphon”), a San Francisco-based middle market private equity firm, announced today that it acquired RoC® Skincare (“RoC”), a market-leading anti-aging skincare brand, from Johnson & Johnson Consumer Inc. Terms of the deal were not disclosed. The transaction is Gryphon’s second investment in the beauty sector after the firm acquired indie color cosmetics brand Milani Cosmetics in June 2018.

Gryphon Executive Advisors Steve LaMonte and Michelle Taylor will serve as advisors to RoC, with Mr. Lamonte acting as Executive Chairman. In addition to Mr. LaMonte, Ms. Taylor, along with select individuals from Gryphon, will join the Board of Directors. As part of the carve-out transaction, Mr. LaMonte and Ms. Taylor will be focused on recruiting the go-forward senior management team to lead RoC under Gryphon’s ownership.

Matt Farron, Principal at Gryphon, said, “RoC has a rich history of skincare solutions innovation stemming from its French pharmacy roots. As the first brand to stabilize Retinol, which is one of the top U.S. dermatologist-recommended cosmetic ingredients for improving the appearance of aging skin, RoC continues to be one of the largest brands solely focused on anti-aging skincare products. By leveraging the brand’s French pharmacy heritage and track record of clinically proven innovation, we see numerous opportunities to expand RoC’s product offering to establish it as a brand with complete skincare solutions leading to increased market share.”

Now headquartered in Manhattan, RoC is a global skincare brand that offers highly efficacious, high quality anti-aging skincare products. RoC was created in 1957 by French pharmacist Dr. Jean-Charles Lissarrague, who believed that skincare solutions should be proactive, positive, and a pleasurable approach to beauty, and has a 60+ year history of revolutionizing the skincare industry. RoC products are primarily manufactured in France, and RoC’s more than 75 products are sold in the U.S., Europe, and Latin America through key mass, drug, club, specialty, ecommerce, and pharmacy channels. Key domestic retailer partners include Walmart, Target, CVS, Walgreens, Costco, Ulta, and Amazon.

Mr. LaMonte added, “We are excited to build on RoC’s past to connect with today’s customers. We see opportunities to expand the portfolio beyond Retinol and anti-aging, improve product support in international markets, strengthen links with the dermatology community, and drive customers into stores with creative, technology-driven product launches and marketing efforts. We also plan to boost RoC’s engagement with all age groups. In addition to RoC’s core customer demographic of women aged 40+, millennials are showing great interest in the category and have responded positively to product trials.”

Ms. Taylor continued, “Gryphon has a long-standing track record of growing consumer product brands and I’m excited to partner with them for a second investment in the beauty sector to capitalize on one of the most iconic skincare brands in the market today. I believe the financial and operational resources we bring will ensure RoC’s ability to thrive as a stand-alone company, delivering a world-class brand to new and existing customers.”

Sawaya Partners, LLC was financial advisor to Johnson & Johnson, and Covington & Burling was legal advisor to Johnson & Johnson. Luc-Henry Rousselle at LSH Partners was Gryphon Investors’ financial advisor and Kirkland & Ellis acted as Gryphon’s legal advisor.

About RoC
RoC is an iconic brand and category pioneer with 60+ year history in anti-wrinkle and anti-aging skincare, offering a full suite of anti-aging products sold across the globe. RoC’s product offering is highly efficacious and clinically proven to reduce signs of facial aging including wrinkles, dark spots, and dullness of skin. The Company’s more than 75 products are sold in the U.S., Europe, and Latin America through key mass, drug, club, specialty, ecommerce, and pharmacy channels. Key domestic retailer partners include Walmart, Target, CVS, Walgreens, Costco, Ulta, and Amazon. Please visit www.rocskincare.com for more information

About Gryphon Investors
Based in San Francisco, Gryphon Investors (www.gryphoninvestors.com) is a leading private equity firm focused on profitably growing and competitively enhancing middle-market companies in partnership with experienced management teams. The firm has managed over $4.5 billion of equity investments and capital since 1997. Gryphon targets making equity investments of $50 million to $200 million in portfolio companies with sales ranging from approximately $100 million to $500 million. Gryphon prioritizes investment opportunities where it can form strong partnerships with owners and executives to build leading companies, utilizing Gryphon’s capital, specialized professional resources, and operational expertise.