BH Cosmetics acquired by MidOcean Partners

By Deanna Utroske contact

- Last updated on GMT

BH Cosmetics acquired by MidOcean Partners
Late last week the private equity firm announced that it had acquired stake in the direct-to-consumer beauty brand. Plans now are to increase BH Cosmetics’ reach in current markets as well as to expand in to new markets.

While full terms of the deal were not disclosed, “BH’s founders will retain a significant ownership stake in the Company,” ​according to a media release circulated by MidOcean Partners. Those founders, Fred Sadovskiy,CEO; Kirill Trachtenberg, chief strategy officer; and Robert Sefaradi, COO, have been instrumental in building BH Cosmetics into the company it is today.

Launched in 2009, the online brand caters to the millennial and generation Z consumers, with a product portfolio of primarily color cosmetics. BH Cosmetics sells complexion products; lip, eye, and brow products; plus makeup brushes and other accessories.

Strategy

BH Cosmetics has leveraged its position as a digital-first brand to build an engaged social following and a successful ecommerce site “with proven capabilities in customer acquisition, consumer engagement and customer loyalty,” ​according to the release.

And it’s this foundation on which MidOcean Partners will now help grow the brand further. “We are incredibly excited to partner with BH, a leading color cosmetics brand with a strong direct-to-consumer and digital marketing business model and multiple levers for continued growth,” ​Jonathan Marlow, managing director of the firm tells the press.

He and the firm will use their knowhow to invest in what BH Cosmetics needs next: “MidOcean has significant experience building strong consumer brands with founder-owned businesses and we believe that BH Cosmetics has substantial opportunities for continued growth and expansion fueled by appropriate investments in people, infrastructure and marketing,” ​explains Marlow. “We see numerous opportunities to increase BH’s presence across channels and geographies and look forward to working with Fred, Kirill, Robert and the talented team at BH to drive this growth.”

Finance

BH Cosmetics worked with exclusively with financial advisors at The Sage Group during this transaction. The independent investment bank specializes in advising branded consumer and beauty companies, and shared a bit of additional insight into the future of BH in its own media release about the deal.

Arash Farin, managing director of The Sage Group believes that “BH Cosmetics is redefining how beauty companies interact with consumers and understands the importance online influencers play in today’s ever-changing retail environment.”

Farin goes to say that, “The company has successfully harnessed the power of social media, giving them the ability to scale rapidly and profitably both on and offline. BH Cosmetics is poised for tremendous growth and has only scratched the surface of its enormous potential.”

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DeannaUtroskeEditor

Deanna Utroske, CosmeticsDesign.com Editor, covers beauty business news in the Americas region and publishes the weekly Indie Beauty Profile column, showcasing the inspiring work of entrepreneurs and innovative brands.

Related topics: Business & Financial, Color Cosmetics

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