SAN FRANCISCO, CA, May 09, 2007 – TSG Consumer Partners LLC (“TSG”), the leading private equity investment firm in branded consumer products companies, announced today the sale of PureOlogy Research LLC to L’Oréal USA, Inc., the U.S. subsidiary of L’Oréal S.A., the world’s largest beauty company.
Founded in 2001, PureOlogy has revolutionized the care of color-treated hair with a line of prestige hair care products sold exclusively through hairdressers in the professional haircare market, and has more than quadrupled sales since 2003. TSG acquired its stake in the Company in 2004.
“PureOlogy’s success really demonstrates the power of a meaningful partnership between a value-added investor, such as TSG, and a great management team led by a visionary entrepreneur. We are proud to have helped Jim and Cheryl Markham recognize their dream of making PureOlogy the fastest growing brand of professional hair care, and in shepherding it to its new home at L'Oréal,” said Yasser U. Toor, a Managing Director of TSG. “PureOlogy perfectly complements L’Oréal’s prestigious brand portfolio and we look forward to seeing it continue to grow in share and awareness.”
“TSG was extremely supportive,” said Jim Markham, CEO and founder of PureOlogy. “We look forward to our new association with L’Oréal, but we will always be appreciative of the assistance rendered by TSG in our formative, fast-growing years.” Jim will continue in a transition role with PureOlogy at L’Oréal.
PureOlogy is the leading provider of prestige high-performance shampoos, conditioners and styling products specifically designed to enhance and protect the radiance of color-treated hair. The Company’s products contain high-quality ingredients combined in proprietary formulations that deliver unmatched color protection with superior texture, shine and manageability. The superior performance of its shampoo and conditioner products, coupled with unique formulations, luxurious ingredients and award-winning packaging allowed PureOlogy to compete at a significant premium to most other professional hair care brands.
TSG was advised by Barrington Associates, a division of Wells Fargo Securities, LLC and L’Oréal was advised by Lazard Frères.
About TSG Consumer
Partners
TSG Consumer Partners pioneered the use of private equity in high-growth, middle market branded consumer companies, and has maintained this focus since inception, with nearly a 20-year track record. The fund has generated top quartile returns on all realized branded consumer investments over four funds, and has developed a team of professionals with an unmatched breadth and depth of expertise that works closely with managements to build leading companies and strong brands. With approximately $1.5 billion in capital under management, TSG has invested in such brands as Terra Chips, Glaceau VitaminWater, PureOlogy, Smart Balance, Smashbox Cosmetics, Meguiar's, Famous Amos, MET-Rx and Mauna Loa Macadamia Nuts, among others.
