TSG Consumer Partners has completed its sale of Meguiar’s Inc. to 3M for an undisclosed amount. Meguiar’s is an Irvine, Calif.–based provider of car-care products like waxes and polishes.
TSG Consumer Partners L.L.C. (“TSG”), the leading private equity investor in branded consumer companies, announced today the sale of its portfolio company, Meguiar’s, Inc., manufacturer of the leading Meguiar’s brand of car care products for cleaning and protecting automotive surfaces, to 3M.
“Working with the company’s strong management team, we were pleased to be able to actively contribute to driving the company’s recent growth,” said TSG partner James L. O’Hara. “Meguiar’s executed on the strategy of launching innovative new products into both its core wax and adjacent car appearance categories like wheel and tire care while expanding distribution in Wal-Mart and Target where auto enthusiast consumers are increasingly shopping,”
“Meguiar’s represents our sixth exit in the past 24 months in which we sold to a strategic buyer for cash and the aggregate enterprise value of such companies increased from approximately $330 million at the time of our investment to over $3.4 billion at exit,” Mr. O’Hara added. “What each of these companies has had in common has been a premium brand position created through products which deliver real differentiated benefits to consumers. Each also benefited from strong entrepreneurial-driven management teams and the hands-on investment approach that is one of our firm’s hallmarks.”
Terms of the transaction were not disclosed.
About TSG Consumer Partners
TSG Consumer Partners L.L.C. is the leading private equity firm in the U.S. focused exclusively on the consumer sector. TSG pioneered the use of private equity in high-growth, middle- market branded consumer companies. TSG was also the first institutional investment fund to focus on investing in natural and organic foods companies as well as companies focused on ethnic foods, functional food and beverage categories, and orphan brands in the personal care and household sectors. Along with its in-depth understanding of and experience within the consumer industry, TSG engages in a highly effective hands-on management approach that distinguishes the firm in attracting investments and building companies. Since its inception in 1987, TSG’s branded consumer investment strategy has achieved cumulative cash-on-cash returns of approximately 60 percent annually.
TSG’s investments over the years include Famous Amos Chocolate Chip Cookies, Terra Chips, Mauna Loa macadamia nuts, Glaceau vitaminwater, Smart Balance Foods, PureOlogy hair care, and Smashbox Cosmetics, amongst others.