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Milk Makeup makes first private equity deal

By Deanna Utroske

10-Jan-2017
Last updated on 10-Jan-2017 at 15:21 GMT2017-01-10T15:21:51Z

Milk Makeup makes first private equity deal

This week, the cosmetics and personal care company announced a partnership with private equity firm Main Post Partners and is looking forward to global growth.

It’s always worth noting where equity investments get made, as they can indicate the current state of industry as well as what sectors, or rather sub sectors, will likely see significant growth in the not so distant future.

Main Post Partners has investments in several sectors, including restaurant chains, fitness, travel, real estate, and more. Main Post is also invested in the device engineering and manufacturing company called Edge for Life, maker of the Delphia Crystal Microdermabrasion System, the HydraFacial MD Hydradermabrasion System, and the Perk Cleanse with Benefits (a system for in-office eye, lip, and facial treatments with accompanying take-home skin care products).

Beauty spend

Main Post was also invested in Too Faced Cosmetics. In December Estée Lauder finalized its acquisition of Too Faced . “The acquisition of Too Faced is complementary to our portfolio of brands because it has a unique feminine and Millennial communication focus, which is really complementary with very little cannibalization with the rest of our makeup portfolio,” Fabrizio Freda, president and CEO of Estée Lauder told WWD at the time.

The $1.4bn was the most Estée Lauder ever spent on an acquisition, which suggests that Main Post and the other equity firms that backed Too Faced choose wisely and supported the color cosmetics company well.  According to this week’s press release about the firm’s deal with Milk, Main Post “partnered with Michael McNamara, former CEO of Neutrogena and Philosophy, and the company’s founders and management to rapidly transform the [Too Faced] business and launch a succession of home run hero products including Better Than Sex Mascara, Born This Way foundation and the much coveted Chocolate Eyeshadow Palettes.”

MILK

Now Main Post has invested in Milk Makeup. The exact of amount of equity hasn’t been disclosed, but the company is “focused on investing $25 - $75 million in profitable, growing companies,” as stated in the release.

Milk Cosmetics is part of Milk Studios, a multi-industry venture that describes itself as “[standing] at the crossroads of the fashion, music, photography, and film worlds. A media company based out of New York and Los Angeles - milk spans contemporary culture and is a hub for nurturing creativity and supporting partnerships with some of the industry’s most visionary talent and innovative brands,” according to that company’s splash page.

Main Post sees potential in Milk: “Milk has a passionate customer base and innovative, creative DNA that will resonate worldwide. We are excited to partner with Rassi and his team to support this next phase of the company’s growth,” comments Josh McDowell, one of five firm partners.

His colleague managing partner Jeff Mills adds, “We are thrilled to have another opportunity to invest in an exciting brand with a dynamic team and exceptional retail partners.”

Objectives

Mazdack Rassi, co-founder and creative director of Milk Makeup tells the press, the company is looking to scale and market the brand for global growth. “We are grateful to our Chairman Scott Sassa for shepherding our new partnership and this next phase of growth with Main Post Partners,” he says.

Explaining his take of the successful brand’s DNA, Rassi adds, “Milk redefines the discovery experience for consumers who love creativity and self-expression. They are the rebels, thinkers and makers who shape our vision and bring it to life.”

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