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Private equity player TPG buys majority stake in e.l.f.

By Simon Pitman+

04-Feb-2014

Private equity player TPG Growth has acquired a majority stake in digital cosmetics brand e.l.f., said to be one of the fastest growing cosmetics brands in the US right now.

TPG is one of the leading strategic investors in high-growth brands, and currently has a portfolio of businesses across a variety of industries that is valued at in excess of $3.6bn.

TPG has bought the stake in e.l.f. from TSG Consumer partners, which is focused on branded cosmetics and personal care products, as well as other consumer categories such as household, food and beverage.

e.l.f. makes a name for itself as a digital color cosmetics brand

e.l.f. has carved out its name as a cutting edge, unique color cosmetics brand, and has been especially successful at marketing itself using a digital platform and associated retail channels.

Much of this has been built through partnership with some of the biggest online retailers in the United States, helping to propel the company’s growth at a time when online retail has proved to be by far the fastest growing retail channel.

“Through its differentiated approach, e.l.f.’s offering has resonated among a key segment of the cosmetics market,” said John Bailey, principal at TPG Growth.

“We believe that many opportunities lie ahead, and are happy to partner with e.l.f. to build the Company and accelerate its already impressive growth trajectory.” 

TPG has proven expertise in e-commerce

TPG has a proven track record in building branded businesses throughinternational distribution relationships, e-commerce capabilities and global operational resources – areas in which e.l.f. will be looking to develop its business as it eyes the next stage of its growth.

Rumors started to circle in the investment world that the company was up for sale at the beginning of January, when it was estimated that the company’s worth was $160m.

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