Nov 13, 2015
E.l.f. Cosmetics owner hires banks for IPO
Nov 13, 2015
J.A. Cosmetics US Inc, the U.S. owner of budget beauty brand e.l.f. Cosmetics, has hired underwriters for an initial public offering that could come as soon as the first half of 2016, according to people familiar with the matter.
J.A. Cosmetics, majority owned by the growth investing arm of private equity firm TPG Capital LP, has annual earnings before interest, taxes, depreciation and amortization of around $50 million, the people said this week.
The sources asked not to be named because the matter is confidential. J.A. Cosmetics did not respond to a request for comment, while TPG declined to comment.
e.l.f. products are sold online, in retail outlets such as Target Corp, and in select standalone locations. The name of the brand stands for eyes, lips and face, and its products cater to cost-conscious consumers, with lipsticks costing around $3.
Last year, the company announced a series of executive changes, including a new chief executive officer, Tarang Amin, who previously worked at Clorox Co and Proctor & Gamble Co.
The cosmetics brand was taken over by TPG in 2014 for between $200 million and $300 million, sources told Reuters at the time.
J.A. Cosmetics is just one of several fast-growing color cosmetics companies with strong social media followings that have attracted investors over the past two years. Last year, NYX Cosmetics was acquired by French cosmetic giant L'Oréal SA , while Too Faced Cosmetics LLC was acquired by investment firm General Atlantic LLC.
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