Latest News

05/18/2010

TSG Agrees to Sell Smashbox Cosmetics

SAN FRANCISCO AND LOS ANGELES, CA

TSG Consumer Partners LLC and Dean and Davis Factor, owners, announced an agreement to sell Smashbox Cosmetics to The Estee Lauder Companies Inc.

SAN FRANCISCO AND LOS ANGELES, CA, May 18, 2010 – TSG Consumer Partners LLC ("TSG"), a private equity firm and leading investor in branded consumer companies, and Dean and Davis Factor, as owners of Smashbox Beauty Cosmetics Inc (Smashbox) announced that they have entered into a definitive agreement to sell Smashbox to The Estée Lauder Companies Inc. (NYSE:EL). The acquisition is expected to close in July 2010, subject to certain closing conditions, including regulatory approval.

Smashbox Beauty Cosmetics was founded in 1996 by Dean and Davis Factor, brothers and great-grandsons of cosmetic legend Max Factor. TSG Consumer Partners invested in the company in February 2006. Over the years, Smashbox has evolved into one of the leading cosmetics brands, with particularly strong performance in the specialty distribution channels.

"We feel very fortunate to have had the opportunity to partner with Dean and Davis Factor, Budd Taylor, and the other members of the Smashbox management team. They have built a differentiated and powerful brand, and we view The Estée Lauder Companies as the ideal steward for the business going forward," said Hadley Mullin, a Managing Director and Partner at TSG. The Smashbox exit represents an exceptional return for TSG following a series of exceptional investments that more recently included PureOlogy, Smart Balance and VitaminWater.

"TSG Consumer has been a tremendous partner over the past 4+ years. What distinguishes TSG Consumer Partners is that they are far more than a source of capital; they also provide substantial expertise and experience in the consumer sector, which helped accelerate our growth," said Smashbox CEO and co-founder, Dean Factor. "Now that the brand is going to be in the very capable hands of The Estée Lauder Companies, we have no doubt that Smashbox and its very talented management team will continue to achieve new heights."

The purchase price was not disclosed.

The seller was advised by Deutsche Bank and Ropes & Gray.

ABOUT TSG CONSUMER PARTNERS LLC

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 Duckhorn Wine Company, 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.

CONTACT

Meghan Gavigan / Dan Goldstein
Sard Verbinnen & Co

Meghan Gavigan - 212.687.8080

Dan Goldstein - 310.201.2040

backtotop
close