Yellow Wood buys Freeman Beauty on the heels of second PE fundraise

Yellow Wood Partners has purchased Freeman Beauty, a provider of branded consumer goods for the skin and hair care sector, from private equity firm Champlain Capital for an undisclosed amount. The deal comes less than a month after the firm raised $370 million to double down on its commitment to the consumer goods sector.

Freeman Beauty is a Los Angeles-based manufacturer of personal care and beauty products. The target’s portfolio of brands includes Freeman Feeling Beautiful facial masks, Freeman Beauty Infusion serum-infused facial masks, Freeman Feeling Legendary facial masks for men, Freeman Bare Foot pampering foot care products, Psssst! dry shampoo, and c.Booth bath & body care products. Freeman Beauty anticipates growing its distribution channel beyond the U.S. and Canada into international markets including South America and Europe. Champlain Capital first invested in Freeman Beauty in September 2009, when the target was operating as pH Beauty Labs Inc.

“The company’s brands are recognized as leaders in the mass facial mask and dry shampoo categories and enjoy broad distribution in mass and specialty oriented beauty and personal care channels,” states Yellow Wood partner Dana Schmaltz. “Yellow Wood’s focus is to partner with great brands with strong consumer loyalty where we can help accelerate growth and assist with cost efficiencies.”

Yellow Wood acquired Freeman Beauty using the firm’s second PE fund, Yellow Wood Capital Partners II LP. Based in Boston and San Francisco, Yellow Wood is a private investment firm that invests exclusively in the middle-market consumer industry. The firm seeks to backs branded consumer products across multiple channels, including drug, food and e-commerce. The firm recently sold PDC Brands, a manufacturer of beauty and personal care brands, for $1.425 billion. Dr. Teal's, a maker of Epsom salt which Yellow Wood acquired in 2014, was under the PDC Brands portfolio.

Other middle-market beauty deals include: BWX Limited’s purchase of cosmetic brand Mineral Fusion from North Castle Partners; Catterton’s purchase of beauty products retailer Steiner Leisure Ltd.; Coty Inc.’s (NYSE: COTY) acquisition of more than 40 beauty brands from Proctor & Gable Co. (NYSE: PG); and Revlon Inc.’s (NYSE: REV) wager to buy cosmetics giant Elizabeth Arden Inc. for $419 million.