First Aid Beauty gets a financial boost

27-Jul-2015 - Last updated on 28-Jul-2015 at 15:42 GMT

Related tags Laura mercier cosmetics

Castanea Partners has made an investment in the prestige skin care company, commonly known as FAB, and is focused on what lies ahead.

The brand’s premise is that drugstore-grade personal care products work and that with enhanced formulations can better address universal skin concerns more effectively and luxuriously. In short, “FAB puts the beauty into first aid,” according to a media release about the new financial partnership.

Transacting business
Castanea has bought a minority share in the company. And though terms of the deal have not been released, all indications are that it’s a win-win. "Having personally grown FAB every step of the way, I could not imagine a better partner than Castanea,” Lilli Gordon, founder and CEO of First Aid Beauty, tells the press.

To broker the deal with Castanea Partners, Gordon worked with Financo, a boutique investment bank that advises on M&A activities in the retail space. “Financo was a true partner during the process of bringing in a new investor,” she says.

“They brought a combination of wisdom, efficiency and thoughtfulness to the table. It was truly a pleasure working with Financo, and I would welcome the chance to do it again,” continues Gordon.

And she’s keen on the new investor as well, remarking that Castanea’s history of success, knowledge of the beauty business, and commitment to the FAB brand philosophy makes the firm a good partner.

Duties and liabilities
The First Aid Beauty board of directors integrates two Castanea partners as part of the deal: Janet Gurwitch, operating partner with the private equity firm and founder and former CEO of Laura Mercier, joins the board as does Steve Berg, managing partner at the firm.

Sizing up the company’s prospects Gurwitch remarks, “Lilli and the team have developed a differentiated brand in the prestige category with a compelling range of products.”

She adds, “FAB has great potential, and we are thrilled to be part of the next stage of its growth.” Berg agrees that the company is in a good situation. “First Aid Beauty is uniquely positioned in the personal care and beauty industry, and is an exciting opportunity for Castanea.”

And he anticipates that the firm’s investment will pay off for everyone involved. “We very much look forward to working closely with Lilli and the team to support the company’s continuing growth.”