Castanea Partners Signs Agreement to Sell Cosmetics Brand Urban Decay to
NEWTON, Mass. -- November 26, 2012
Castanea Partners today announced the signing of an agreement to sell Urban
Decay to L’Oréal.
Urban Decay, created in 1996 by make-up expert Wende Zomnir, has built a loyal
consumer following by offering high quality products emphasizing femininity
and irreverence. Known for its innovative products, creative packaging and
bold colors, the brand always stays true to its “Beauty with an Edge” mantra.
The company markets its products through domestic and international specialty
beauty retailers, better department stores, and its website.
Urban Decay is the fastest growing company in prestige cosmetics, ranking
among the top selling brands in each of its North American retailers, while
rapidly expanding its presence in Europe and Asia. Under the leadership of CEO
Tim Warner, the company earned wholesale revenue of $140 million over the past
12 months, more than three times its revenue at the time of Castanea’s
investment in 2009.
“Castanea has been a great partner for Urban Decay as they truly understand
who we are and appreciate what it takes to grow a successful brand, said Wende
Zomnir, Chief Creative Officer. “Castanea was incredibly supportive of our
team and encouraged us to invest in our vision of becoming one of the top
cosmetics brands in the world,” added CEO Tim Warner.
“The entire Urban Decay team has done a great job of rapidly growing the
company while remaining true to their brand and its values. We very much
enjoyed working with the Urban Decay team and are confident they will thrive
with their new partners.” said Steve Berg, Partner from Castanea.
Terms of the transaction were not disclosed. Closing of the transaction is
subject to regulatory approval, which is expected by the end of the year.
Castanea Partners was advised by Deutsche Bank, Piper Jaffray, Cooley LLP, and
Deloitte. L’Oréal was advised by Lazard and Weil, Gotshal and Manges, LLP.
Castanea Partners is a private equity firm founded by operating executives and
private equity veterans. Castanea invests between $15M to $75M of equity in
companies within specifically targeted industry sectors where the firm has
proven investment and operating expertise. Castanea is principally focused on
investing in dynamic consumer brands and marketing services companies that
enable such brands to connect with their customers. Castanea is currently
investing from its third fund, a $500 million fund that targets companies with
enterprise values up to $250 million. For more information visit
L’Oréal, the world’s leading beauty company, has catered to all forms of
beauty in the world for over 100 years and has built an unrivalled portfolio
of 27 international, diverse and complementary brands. With sales amounting to
20.3 billion euros in 2011, L’Oréal employs 68,900 people worldwide. Regarding
sustainable development, Corporate Knights, a Global Responsible Investment
Network, has selected L'Oréal for its 2012 ranking of the Global 100 Most
Sustainable Corporations in the World. L'Oréal has received this distinction
for the 5th consecutive year. www.loreal.com
L'Oréal USA, headquartered in New York City, with 2011 sales of over $5.1
billion and 9,800 employees, is a wholly-owned subsidiary of L'Oréal SA, the
world’s leading beauty company. In addition to corporate headquarters in New
York, L'Oréal USA has Research and Innovation, Manufacturing and Distribution
facilities across seven states, including New Jersey, Kentucky, Arkansas,
Illinois, Ohio, and Texas. L'Oréal's impressive portfolio of brands includes
Lancôme, Giorgio Armani Beauty, Yves Saint Laurent Beauté, Viktor & Rolf,
Diesel, Cacharel, Clarisonic, L'Oréal Paris, Garnier, Vichy, La Roche-Posay,
L'Oréal Professionnel, Kérastase and Shu Uemura Art of Hair, Maybelline New
York, Soft-Sheen. Carson, Kiehl’s Since 1851, Ralph Lauren Fragrances, essie
Cosmetics, Redken 5th Avenue NYC, Matrix, Mizani, Pureology, SkinCeuticals and
Dermablend. For more information visit www.lorealusa.com.
For more information, visit Castanea Partners or contact Marion Schouten at
617.630.2420 or firstname.lastname@example.org.
All company, brand, or product names contained in this document may be
trademarks or registered trademarks of their respective holders
Marion Schouten, 617-630-2420
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