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  • Pureology

    Premium hair care manufacturer and marketer selling through specialty channels.

       

    Partner Website

    www.pureology.com »

    CASE STUDY



    In 2004, TSG partnered with the founder of PureOlogy in a majority recapitalization that included a modest amount of leverage, enabling investment in growth initiatives such as new product extensions and expanded distribution.

    When TSG exited its investment through a strategic sale to L’Oréal in 2007, PureOlogy’s sales had increased by approximately five times and profit margins nearly doubled versus the year prior to TSG’s investment.

    BACKGROUND

    The founder of PureOlogy had created a unique and proprietary formula for shampoo and conditioning products that preserved the life of color in color-treated hair. The company's products were primarily distributed in a limited number of premium professional hair salons at the time TSG invested.

    TSG expanded profit margins, distribution and new product development.


    Over the course of its partnership with the founder and management team, TSG worked to drive significant value by:

    - Dramatically increasing margins, by raising the price of products

    - Expanding distribution not only into a nationwide network of premium professional salons, but also into certain mid-price salons and upscale chains

    - Introducing shampoo and conditioner lines for specific hair types, as well as innovative styling aid products, to enable PureOlogy to market a complete line of hair care products to salon customers

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