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Equity Platform Acquires Majority Stake in e.l.f. Cosmetics

Posted: February 3, 2014

TPG Growth, the middle market and growth equity investment platform of TPG, announced it has acquired a majority stake in e.l.f. Cosmetics, one of the fastest growing cosmetics brands in the U.S. from company founders and TSG Consumer Partners LLC, a strategic equity investor in high-growth brands. Existing management will continue to have a meaningful investment in and an ongoing role with the company. Terms of the transaction were not disclosed.

e.l.f. Cosmetics occupies a unique niche in the color cosmetics space, providing high-quality cosmetics, tools and accessories at compelling values. Combining strong digital capabilities and insights to deliver innovative products to consumers, the company has created a strong online presence and has become a valuable partner to world-class retailers.

“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.”

“Our team is proud of what we have built and are extremely excited to have a value-added partner like TPG Growth to help us scale the business,” said Joey Shamah, co-founder of e.l.f. Cosmetics. “Their track record in building consumer businesses, international distribution relationships, e-commerce capabilities, global operational resources and access to incremental talent make them an ideally suited partner for our company. We are very excited to build upon our strong foundation and deliver even more value to our consumers and retail partners.”

“The growth of e.l.f. Cosmetics has been phenomenal, and TSG is fortunate to have been partnered with such an exciting company,” said Jennifer Baxter Moser, managing director at TSG Consumer Partners. “We look forward to watching the brand continue to grow and develop in the future."

Legal advice was given to TPG Growth by Kirkland and Ellis LLP. TSG Consumer Partners received legal advice from Sidley Austin LLP; e.l.f. was advised by Sills Cummis & Gross P.C. Financo served as exclusive financial advisor to e.l.f. Cosmetics and TSG Consumer Partners.