Private equity firm MidOcean Partners has agreed to acquires BH Cosmetics, a consumer skincare and cosmetics distributor. Financial terms of the deal were not disclosed; however BH’s founders will retain a stake in the company.
Founded in 2009, BH Cosmetics offers a variety of “high-quality” color cosmetics for the face, lips, eyes and brows. The Los Angeles-based target is a direct-to-consumer cosmetics brand also selling makeup brushes and other accessories. The target has more than 175,000 followers on Twitter and approximately 1.5 million in Facebook. BH plans to use MidOcean’s investment to drive continued growth and expansion into new markets.
“BH was launched in 2009 with a focus on eye palettes and has since developed a full suite of cosmetics with high quality products at value price points,” states BH cofounder Kirill Trachtenberg. “The partnership with MidOcean will enable us to dedicate additional resources to key areas of our business including innovation and product development, marketing and branding and customer service.”
MidOcean is a middle-market PE firm established in 2003, and has maintained a core focus on the beauty sector according to the company. In general, the private equity firm targets the consumer, industrial and business services sectors. In August 2015, MidOcean made another deal in the beauty industry by acquiring IMAGE Skincare.
The New York-based private equity firm has also acquired a majority stake in Affinity Dental Management in June; and in the same month sold Agilex Fragrances to Firmenich. Some of the firm's previous investments include: oral health product manufacturer Water Pik Inc.; luggage company Travelpro Group, and kids play set manufacturer KidKraft. MidOcean provides a minimum of $25 million in equity in its deals.
The Sage Group is serving as financial advisor to BH Cosmetics, while Sheppard Mullin Richter & Hampton LLP is acting as legal advisor. Kirkland & Ellis is acting as legal advisor to MidOcean.