PERSONAL CARE PRODUCTS & SERVICES Q1 2015
CONTACTS MERGERS & ACQUISITIONS
M&A activity in the personal care industry was robust in 2014, with 81 transactions reported for Tracy Patch the year, a preliminary figure that will surely rise as additional transactions are recorded for the Vice President year. The elevated level of activity in the industry is presenting a unique opportunity for private (949) 460-6432 business owners looking to exit their business or team with a growth partner. In fact, as [email protected] valuations are generally on an upswing, many sellers have more options today than in the past
five years to extract value from their companies. David Bench
Managing Director Personal Care Industry M&A Transactions
(949) 460-6431 120 [email protected] 100 100 94 85 81 Daniel Schultz 77 80 75 Director of Business Development 70 73 69 67 (617) 619-3368 60 [email protected]
40
20
0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 Sources: Capital IQ, Capstone Partners LLC research Much of the recent activity in the segment involves middle market companies. In an industry that depends on new product development and introductions, these target companies can offer buyers new and innovative products and services, as well as access to growing market niches. Among buyers, synergy is the new black, and the potential for synergies vis-à-vis acquisitions can help strategic buyers justify premium valuations. At the same time, private equity buyers remain very active in the industry, backed by readily available financing, low interest rates, strong BOSTON fundraising and plenty of cash to invest.
CHICAGO 2015 OUTLOOK LONDON While 2014 was a banner year for mergers & acquisitions, activity is projected to be even LOS ANGELES stronger going into 2015. This expectation is a result of improved CEO confidence. The U.S. PHILADELPHIA economy is positioned for growth, most economic indicators have now fully recovered from the recession and more people are re-entering the labor force with better prospects for SAN DIEGO employment, all contributing to a healthy environment. But with the market likely near its peak, SILICON VALLEY many business owners are now faced with the choice to “grow” ̶ take risks and expand the TAMPA business, or “go” ̶ sell now to avoid the next downward cycle.
Personal Care Products & Services Q1 2015
INDUSTRY GROWTH & TRENDS
The U.S. personal care industry is projected to grow at an compound rate of 5% annually between 2014 and 2018. Demand for personal care products and services is driven by population growth, consumer confidence and spending and changing consumer preferences. While many of the products in the category are considered necessities and are purchased regardless of economic conditions, others are considered luxury items and their sales are impacted by changes in the economy. Personal care services, which include spa and salon services and cosmetic procedures, were once reserved for the luxury market but now appeal to – and are accessible to – the mass market. As a result, sales of such services are rising.
The performance and profitability of individual companies depends on the effectiveness of their product innovations, sales and marketing efforts, and the efficiency of their operations. Larger companies in the industry often enjoy scale advantages in purchasing, manufacturing, distribution and marketing. However, small and mid-sized companies compete effectively by offering specialized products that appeal to niche markets. Innovative brands, companies with strong potential based on prolific R&D results, mass brands with broad appeal and recognized brand names are all in demand among industry buyers. Several trends are contributing to the industry’s attractive growth prospects, including the following:
Aging Population is Driving Demand - The aging U.S. population has created substantial consumer demand for anti-aging face, hair and body care products and services. The U.S. population age 65 and over is expected to increase more than 35% between 2010 and 2020, driving demand for such purchases. This growing segment has a higher-than-average level of disposable income which they are willing to spend on their appearance. The advent of social media has also elevated consumers’ awareness of their looks and has increased their desire to look good. Along with this trend, there has been a rise in the sale of cosmeceuticals, a combination of cosmetics and pharmaceuticals. Cosmeceuticals include skincare anti-aging formulations, products for stress relief and sun protection, as well as haircare and makeup products that beautify as they address health problems or concerns. As the senior population increases in size and spending power, the focus on anti- aging products will rise.
New Target Markets - The men's, tweens (9- to 12-year-olds) and ethnic markets represent growth opportunities for personal care product manufacturers. While the primary focus for personal care products has traditionally been women, these segments remain relatively untapped for products designed to meet their needs, and are considered good acquisition targets to build out product lines and brand offerings.
Growth Opportunities in Global Markets - Emerging economies with expanding middle classes are presenting solid growth opportunities for U.S.- based personal care companies. Attractive foreign markets include China, Russia and India. Rising income levels in these and other developing countries are creating more consumers willing to spend on personal care products, which they consider an "affordable luxury."
Capstone Partners LLC 2 Personal Care Products & Services Q1 2015
SAMPLE ACQUIRER PROFILE: L’OREAL
L’Oréal S.A. is the world’s largest cosmetics maker and offers its products under the L’Oréal Professionnel, Red Ken, Kérastase, Matrix, L’Oréal Paris, Garnier, Maybelline, Softsheen Carson, Essie, Lancôme, Giorgio Armani, Yves Saint Laurent, Biotherm, Kiehl’s, Ralph Lauren, Shu Uemura, Cacharel, Helena Rubinstein, Diesel, Clarisonic, Viktor & Rolf, Urban Decay, Vichy, La Roche Posay, SkinCeuticals, Innéov, Sanoflore, and Roger & Gallet brand names.
Acquisitions have been a focus for L’Oréal for years. Jean-Paul Agon, the Paris-based company’s chairman has said that he is “confident that we will find other opportunities this year or next… this is the story of L’Oréal. We are pretty good at seizing brands that are at the early stage of development and making them huge.” Acquisitions include the following and are expected to remain a strategic focus for L’Oréal in 2015.
RECENT L’OREAL ANNOUNCED ACQUISITIONS
Date Target Business Description Location
12/2014 ColoRight Mfg. hair coloring technology Israel 10/2014 Carol’s Daughter Mfg. hair & skincare products USA
09/2014 Sayuki Custom Cosmetics Mfg. cosmetics USA
09/2014 Niely Cosmeticos Mfg. haircare products Brazil 06/2014 NYX, Los Angeles Mfg. cosmetics USA 04/2014 Decléor S.A. & Carita Int’l Mfg. spa products France
04/2014 Magic Holdings Int’l. Mfg. skincare products China
09/2013 Cheryl’s Cosmeceuticals Mfg. hair & beauty products India 04/2013 Interconsumer Products Mfg. health & beauty products Kenya 01/2013 Lab. de Cosmeticos Vogue Mfg. toiletries Colombia
12/2012 Urban Decay Mfg. cosmetics USA
In October 2014 L’Oréal announced the acquisition of Carol’s Daughter, the manufacturer of hair and beauty products for women of color sold through specialty stores, mass retailers and online. The acquisition comes about a month after Carol’s Daughter’s retail arm exited Chapter 11 bankruptcy, which generated approximately $27 million in sales in the twelve months ending September 2014. The acquisition is expected to allow L’Oreal to build on its dedicated multi-cultural beauty division.
In September 2014, L’Oréal acquired Sayuki Custom Cosmetics for an estimated $150 million. Founded in just 2012, Sayuki manufactures and sells cosmetics and skincare products, and was the designer and inventor of a skincare scanning and color matching technology and software that allows a woman to match her skin color to custom cosmetic products including foundations and concealers. The Sayuki technology then formulates and produces the finished custom product for the customer onsite in a matter of minutes.
Capstone Partners LLC 3
Personal Care Products & Services Q1 2015
SAMPLE ACQUIRER PROFILE: L’OREAL (CONTINUED)
In September 2014, L’Oréal also announced the acquisition of Niely Cosmeticos Group, a Brazil-based independent hair coloration and hair-care company whose products are sold in supermarkets, pharmacies and perfume chains. The acquisition further penetrates one of the biggest and fastest growing hair color geographic markets in the world. Niely’s popularity with Brazil’s growing middle class complements the products offered by L’Oreal’s consumer products division. L’Oréal, which earns more than 8% of its revenue in Latin America is currently focusing on new BRICS (Brazil, Russia, India, China, and South Africa) markets.
In June 2014, L’Oréal acquired NYX Cosmetics, which manufactures richly pigmented products at affordable prices. NYX had created a niche between the prestige brands sold in department stores and mass brands sold in drugstores. At the time of the acquisition, NYX was generating over $100 million in sales, with much of its success attributable to its marketing efforts in the digital space.
In September 2013 L’Oréal acquired Cheryl’s Cosmeceuticals, a brand that is synonymous with superlative skin care treatments and products sold in salons. The company offers a comprehensive range of innovative and unique treatments and products to address the entire spectrum of skin and hair care concerns, utilizing natural ingredients sourced from across the world. At the time of the acquisition, Cheryl’s was generating approximately $3.5 million in revenue per year. Jean- Christophe Letellier, Managing Director, L’Oréal India, said, “This is an attractive opportunity for L’Oréal in India as it broadens the product offering of our Professional Products Division in this country to also include skincare products and services. It will further enhance our leadership position in the very dynamic professional products market where we are present with our brands - L’Oréal Professionnel, Matrix and Kerastase.’’
In December 2012 L’Oréal acquired Urban Decay Cosmetics from private equity group Castanea Partners who had originally acquired the business in March 2009 from LVMH. Urban Decay is known for experimental shades and innovative products; from intensely pigmented eye shadows to waterproof 24/7 glide-on eye pencils, the company has one of the biggest shade ranges in the industry. The products are popular among youthful, cutting-edge consumers who are attracted by the fashion-forward image of the brand and its non-animal testing process. “Urban Decay will beautifully complement L’Oréal Luxe’s portfolio of iconic brands. It is the make-up specialist we needed to fully satisfy young women in search of playful colors and inspiration in selective distribution, at an accessible price point. It is totally additional to our existing propositions and as such it will contribute significantly to the growth of the Division in the years to come,” said Nicolas Hieronimus, President L’Oréal Luxe. At the time of the acquisition, Urban Decay was generating $130 million in sales.
Capstone Partners LLC 4 Personal Care Products & Services Q1 2015
SAMPLE ACQUIRER PROFILE: YELLOW WOOD PARTNERS
Yellow Wood Partners is a private equity group that is focused on finding strong brands and companies in the consumer sector with an emphasis on consumer packaged goods. Through its combined operating and investing experience the team at Yellow Wood understands how to evaluate consumer businesses whose products are sold through food, drug, mass, wholesale club and other “big box” retailers.
Yellow Wood only invests in businesses where the investment team believes it can increase the value of the business through operating experience and direct involvement. The senior team brings specific functional expertise in sales, marketing, operations and finance, and is directly involved in all aspects of operations in order to build strong, long-term relationships with the operating managers of its investments. Its investment criteria includes the following:
• Focused exclusively on the packaged consumer products sector • Strong brands with $10+ million in net sales • Targets $10-$80 million in equity per investment • Prefers majority ownership but will consider minority or 100% investments • Operationally-focused with functional expertise in sales, marketing, operations and finance
In February 2014 Yellow Wood acquired Dr. Teal’s Therapeutic Solutions from Advanced Beauty, Inc. as an add-on acquisition to its Parfums de Coeur holding. Dr. Teal’s is a leading brand across multiple personal care categories including specialty bath, foot care and first aid and is sold in food, drug and mass channels. Dr. Teal’s is the largest branded Epsom salt brand in the U.S. and had grown over 50% annually over the past five years.
“Dr. Teal’s is a tremendous brand, offering the rare combination of real therapeutic solutions with truly experiential bath and body products that are as delightful to use as they are effective,” said James Stammer, CEO, Parfums de Coeur. “Dr. Teal’s is the perfect complement to Parfums de Coeur’s leading fragrance and specialty bath offerings. We look forward to continuing to grow the Dr. Teal’s brand with additional marketing resources to build on the current success of the brand with our broader customer base. This is the second add-on acquisition we have completed since Yellow Wood purchased Parfums de Coeur, which continues to broaden our product line, and it underscores the valuable role Yellow Wood plays in utilizing their deep consumer products industry knowledge and connections.”
“Dr. Teal’s is an ideal add-on investment for Parfums de Coeur, as we believe that the Parfums management team will be able to add even more firepower to an already growing and well positioned brand,” said Dana Schmaltz of Yellow Wood. “The acquisition fits our strategy of building Parfums into a broader personal care business in many ways.”
Capstone Partners LLC 5 Personal Care Products & Services Q1 2015
SAMPLE ACQUIRER PROFILE: YELLOW WOOD PARTNERS (CONTINUED)
In January 2013 Yellow Wood acquired Ilex Consumer Products Group, a company that owns brands in the OTC pharmaceutical sector as well as the health, bath and beauty sector. The brands include the St. Joseph family of products, di-Gel digestive aid, Calgon and The Healing Garden. The Ilex purchase fits well with Yellow Wood’s strategy of investing in consumer brands where its operating focus can enhance the growth and profitability of the brand with strong brand equity, while expanding Ilex’ distribution.
“It is exciting to have completed the acquisition of our second portfolio company. This was an exclusive opportunity where we worked with the sellers to reach an agreement that provided strong value for the initial work they had completed in re- launching the St. Joseph and Calgon brands, while allowing Yellow Wood to invest at a level we believe will provide attractive returns for our stakeholders,” said Dana Schmaltz, Partner at Yellow Wood.
In September 2012 Yellow Wood partnered with the management team to acquire Parfums de Coeur (“PDC”) to build a leading company in the personal care sector. Founded in 1981, PDC is a leading mass-market fragrance marketer with an exceptional portfolio of designer quality perfumes, fragrance body sprays and colognes at affordable prices.
“We are pleased and excited to invest in PDC to support its continued domestic and international growth,” said Peter Mann, a Yellow Wood Founding Partner and the new Chairman of PDC. “The company’s experienced and committed management team will be a huge asset as PDC continues to expand and innovate. We look forward to working with them. PDC is precisely the kind of company that Yellow Wood was created to help. Its strong brands, unique positioning, deep retail distribution and dedication to quality are what we look for in successful and growing consumer businesses. Moreover, our experienced Yellow Wood operating team will enhance and complement PDC’s exceptional management talent.”
“The Company’s success has been led by its strong track record of developing unique and innovative products, supported by differentiated marketing and strong retail relationships. We are excited to partner with management to help accelerate their growth vision into new opportunities, both domestically and overseas. Just as important, we are eager to work with management to identify complementary add- on brands or businesses to further expand the Company’s footprint,” said Dana Schmaltz of Yellow Wood.
“We are extremely impressed with Peter and Dana and grateful for their support and confidence. The strong operating resources Yellow Wood brings will further enable us to grow our brand platform, while continuing to provide both our consumers and retail partners with the quality and excellence they have come to expect from PDC,” said James Stammer, CEO, Parfums de Coeur.
Capstone Partners LLC 6 Personal Care Products & Services Q1 2015
SELECT PERSONAL CARE PRODUCTS & SERVICES M&A TRANSACTIONS
Enterprise EV / LTM Value Date Target Acquirer Target Business Description (mm) Revenue EBITDA Produces and markets natural whole-food Dec-14 FoodState Inc. Pharmavite LLC - - - supplements.
Aurobindo Pharma Manufactures and sells nutritional supplements in the Dec-14 Natrol, Inc. $132.5 - - USA Inc. United States.
Shape Medical Weight Life Time Fitness, Inc. Owns and operates a non-surgical aesthetic and Dec-14 - - - Loss Center, LLC (NYSE:LTM) wellness clinic in Georgia.
Oasis Health Manufactures homeopathic medicines, cosmetics, Nov-14 Migranade, Inc. - - - Products, Inc. health and beauty aids, and nutritional supplements.
Dead Down Offers odor control products with a primary focus on Nov-14 Arcus Hunting LLC - - - Wind LLC skin care and health.
DSE Healthcare Six over-the-counter drug brands including Lipo- Nov-14 Clarion Brands LLC - - - Solutions (6 brands) Flavonoid, Certain Dri, Cystex, Albolene, Absorbine Jr.
The Estée Lauder Nov-14 Le Labo Inc. Manufactures perfumes and fragrances. - - - Companies (NYSE:EL)
The Estée Lauder Oct-14 L Rodin LLC Manufactures beauty care products. - - - Companies (NYSE:EL)
Manufactures skincare products under the H+H, Sterex Oct-14 H&H Products Gentell, Inc. - - - Medical and Gentle Plus brand names.
C.B. Fleet Gryphon Investors; Manufactures consumer health, beauty, and over the Oct-14 - - - Company, Inc. GoldPoint Partners LLC counter pharmaceutical products for consumers.
Nutri-Health Manufactures and markets nutritional health Oct-14 Nature's Products, Inc. - - - Supplements, L.L.C. supplements.
Global Oct-14 Karex Global Limited Manufactures and distributes sexual health products. $12.0 1.3x - Protection Corp.
Dazzle Style Provides hair wash and blow dry, manicure and Oct-14 Shirin's Events LLC - - - Bar & Boutique pedicure, waxing, and makeup services.
Youngevity Oct-14 Restart Your Life LLC Operates as a dietary supplement company. $1.8 - - Essential Life Sciences
Neogen Corp. Produces a detection system for microbiological testing Oct-14 BioLumix, Inc. - - - (NasdaqGS:NEOG) of nutraceutical, cosmetic, toiletry, and other products.
Milstein Batta Advanced Dermatology Oct-14 Provides dermatology services in Pennsylvania. - - - Dermatology LLC & Cosmetic Surgery Inc.
Dairy Association Offers Bag Balm, a solution for soothing and softening Sep-14 Vermont's Original LLC - - - Company, Inc. chapped and chafed skin, and promoting healing.
Touchless Care Crawford Healthcare Manufactures skin care products for hospitals, nursing Sep-14 - - - Concepts, LLC Holdings Limited homes and home healthcare institutions.
CCA Industries Inc. Capital Preservation Manufactures and distributes health and beauty aid Sep-14 $23.5 0.6x - (AMEX:CAW) Holdings LLC products primarily in the United States and Canada.
Fort Collins Advanced Dermatology Provides health consultations, special treatments and Sep-14 - - - Skin Clinic, P.C. & Cosmetic Surgery Inc. diagnostic care services.
Doing business as Xyience, produces sports nutrition Sep-14 Manzen, LLC Big Red, Inc. - - - and supplements, and energy drinks.
INSIGHT Manufactures non-prescription medications and Sep-14 Medtech Products, Inc. $750.0 - - Pharmaceuticals, LLC personal care products for common ailments.
Capstone Partners LLC 7 Personal Care Products & Services Q1 2015
SELECT PERSONAL CARE PRODUCTS & SERVICES M&A TRANSACTIONS
Enterprise EV / LTM Value Date Target Acquirer Target Business Description (mm) Revenue EBITDA Aug-14 Humanetics Corp,, 7- InterHealth A dietary ingredient that slows the impact of diet and Keto Dietary Brand Nutraceuticals, Inc. age-related weight gain. - - -
Elements of Health Aug-14 KEB Enterprises, LP Manufactures and markets health supplements. - - - Care, LLC
Twinlab Manufactures nutritional supplements including weight Aug-14 Employee Buyout - - - Corporation management and energy products.
The Kroger Co. Operates as an online retailer of health and wellness Aug-14 Vitacost.com, Inc. $281.2 0.6x - (NYSE:KR) products primarily in North America.
Chastain Wellness Provides weight loss, body contouring, facial esthetics Aug-14 Beauty by Alethea Inc. - - - Studio, LLC and massage services.
Integrated Electric KollagenX Corp. Manufactures and sells skin care products in the United Aug-14 - - - Systems Corp. (OTCPK:KGNX) States and internationally.
Quanta Aesthetic EL.EN. Società per Azioni Develops laser systems for use in aesthetic and other Aug-14 $5.7 0.8x - Lasers USA, LLC (BIT:ELN) applications worldwide.
Jul-14 Virga Botanicals, LLC 400 Beverly, Inc. Manufactures skincare and body care products. - - -
Axiom A contract manufacturer of dietary and nutritional Jul-14 METAUGUS, INC. - - - Laboratories, LLC supplements, vitamins and nutraceuticals.
Jul-14 ME SPA me! Bath Owns and operates a chain of spas. - - -
PreCision Valeant Pharmaceuticals Develops and manufactures dermatology products and Jul-14 $500.0 - - Dermatology, Inc. Intl. (TSX:VRX) therapeutic and cosmetic skincare solutions.
Helen of Troy Limited Operates as a direct retailer of doctor-formulated Jul-14 Healthy Directions, LLC $195.0 1.3x 8.0x (NasdaqGS:HELE) nutritional supplements and skincare products.
FDC Vitamins, LLC dba Produces and distributes vitamins, minerals, herbs and Jun-14 VS Hercules LLC $85.0 - - Nutri-Force Nutrition food supplements, including for hair, skin and nails.
Cannabis Sativa, Inc. Manufactures a line of natural hemp-based skin Jun-14 Kush Inc. $13.2 - - (OTCBB:CBDS) care products.
Jun-14 Coterie Inc. Poshly Inc. Operates an online site for beauty products. - - -
Manufactures disposable and consumable products Jun-14 Triad Group, Inc. Medline Industries, Inc. $7.1 - - including personal care products.
N.V. Provides anti-aging products, anti-inflammatory diets Jun-14 Lion Capital LLP - - - Perricone M.D., Ltd. and skin care supplements.
Joey New York, Inc. Wholesales and retails natural skin care and beauty May-14 RAR Beauty, LLC $3.6 - - (OTCPK:JOEY) products in the United States.
Evriholder Designs heat therapy, cold therapy and aromatherapy Apr-14 DreamTime, Inc. - - - Products, LLC solutions.
Arctic Beauty Beauty Systems Distributes beauty and cosmetics products to the Apr-14 - - - Supply Inc. Group LLC professional market.
Manufactures and packages pharmaceutical and Apr-14 Pharma-Pac, LLC Emilia Cosmetics Ltd. - - - nutritional, including skincare, products.
Fontarome Produces flavors, fragrances and pharmaceutical Apr-14 SFM, LLC $2.6 - - Chemical, Inc. ingredients.
Capstone Partners LLC 8 Personal Care Products & Services Q1 2015
SELECT PERSONAL CARE PRODUCTS & SERVICES M&A TRANSACTIONS (CONTINUED)
Enterprise EV / LTM Value Date Target Acquirer Target Business Description (mm) Revenue EBITDA Pamplona Capital Manufactures generic pharmaceuticals and OTCs, Apr-14 Alvogen, Inc. - - - Management LLP including cosmetics and personal care products.
Cedarburg Albany Molecular Contract manufacturer of pharmaceutical, personal Apr-14 $41.0 - - Pharmaceuticals, Inc. Research Inc. care and dietary supplement ingredients.
CornerStone Research Apr-14 F.H.G. Corporation Manufactures dietary supplements. - - - & Development
P&G, DDF SA Designer Manufactures skin care products, including anti-aging, Apr-14 - - - Skincare Business Parfums Limited acne and hyper pigmentation products.
NuStar Nutritional Nutroganics, Inc. Provides nutritional supplement contract Apr-14 - - - Manufacturing, LLC (OTCPK:NUTT) manufacturing services.
KOSE Corp. Apr-14 Tarte, Inc. Manufactures cosmetics. $135.0 - - (TSE:4922)
Northwest Cosmetic Contract research, development and manufacture of Apr-14 Clearview Capital, LLC - - - Laboratories, LLC cosmeceutical & personal care products.
Oscar de la Renta, Produces and distributes the Oscar de la Renta Mar-14 Inter Parfums USA, LLC - - - Fragrance Division fragrance collections.
Arminak & Manufactures packaging solutions for cosmetics, Mar-14 Rieke Corporation $177.0 - - Associates, Inc. personal care, skin & body and hair care markets.
CellCeuticals Histogen Mar-14 Develops skin treatment and cleanser products. - - - Skin Care, Inc. Aesthetics, LLC
The Bobby Denman Manufactures products for the professional beauty Mar-14 - - - Company LLC International Ltd market worldwide.
One Equity Manufactures hydrogen peroxide, peracetic acid and Mar-14 PeroxyChem LLC $200.0 - - Partners LLC other solutions for cosmetics and other markets.
The DeWolf KODA Distribution Distributes specialty chemicals to personal care, color Feb-14 - - - Companies, Inc. Group, LLC cosmetics and other markets.
Adv. Dermatology & Feb-14 Miramar Dermatology Provides dermatology services. - - - Cosmetic Surgery Inc.
Doing business as e.l.f. Cosmetics, provides cosmetic Feb-14 JA Cosmetics Corp. TPG Growth - - - and makeup products.
Vogue The Carlyle Group LP Manufactures and distributes salon-heritage hair care Feb-14 $798.0 - - International, Inc. (NasdaqGS:CG) and other personal care products.
Advanced Beauty Manufactures therapeutic and personal care products, Feb-14 Parfums de Coeur, Ltd. - - - Systems; Dr. Teals including specialty bath, foot care and first aid.
East Shore Foreswood Distributes consumer products, including anti-aging Feb-14 - - - Distributors, Inc. Industrial Corporation creams and hand moisturizers.
Provides bio-products for use in cosmetics and other Jan-14 Nucelis Inc. Cibus Global, Ltd. - - - products.
Westside Advanced Dermatology Jan-14 Provides medical and cosmetic dermatology services. - - - Dermatology PLLC & Cosmetic Surgery Inc.
Designs, manufactures and markets products for the Jan-14 Bon Vital Inc. Cramer Products, Inc. - - - wellness industry.
Biozone Muscle Pharm Corp. Manufactures OTC drug, cosmetic and beauty products Jan-14 $17.4 1.4x - Pharmaceuticals (OTCPK:MSLP) on behalf of third parties.
LTM = last twelve months; EV = enterprise value; Sources: Capstone Partners LLC research; Capital IQ; public filings and press releases
Capstone Partners LLC 9 Personal Care Products & Services Q1 2015
CAPSTONE PARTNERS: COMPLETED PERSONAL CARE PRODUCTS & SERVICES TRANSACTIONS
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CAPSTONE PARTNERS: OTHER CONSUMER PRODUCTS & SERVICES TRANSACTIONS
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Capstone Partners LLC 10 Personal Care Products & Services Q1 2015
THE PERSONAL CARE PRODUCTS & SERVICES TEAM
David Bench, Managing Director [email protected] • (949) 460-6431
David is a Managing Director in charge of the Western Region, based out of Los Angeles. Prior to Capstone, David managed the Western region for Morgan Stanley Smith Barney’s Capital Strategies Group and its predecessor, Citi Capital Strategies. David has focused on middle market investment banking for nearly 30 years and has been the lead banker in over 250 M&A transactions involving both domestic and foreign corporate buyers, as well as leveraged recaps with private equity sponsors. David’s achievements in investment banking have gained national recognition by The M&A Advisor: one of his transactions was awarded the “Private Equity Deal of the Year,” while another was recognized as the “Energy Deal of the Year.” Mr. Bench has also been awarded “Middle Market Financing Professional of the Year,” an award recognizing M&A’s most accomplished professionals. Mr. Bench holds a BS and an MBA in Finance from Brigham Young University. He is a Series 7 and 63 Registered Securities Representative and a Series 24 Registered Securities Principal.
Tracy Patch, Vice President [email protected] • (949) 460-6432
Tracy is a Vice President in the Los Angeles office, supporting the management of the Western Region. Prior to Capstone, Tracy worked as a senior banking professional in Morgan Stanley Smith Barney’s Capital Strategies Group and its predecessor, Citi Capital Strategies. She possesses over ten years of experience in middle market investment banking, working on both domestic and cross-border transactions. Her previous finance experience includes working in the hedge fund industry with Collins/Bay Island Securities LLC and Talisman Capital Partners. Prior to that, Mrs. Patch worked with institutional fixed income sales at Vining Sparks IBG, LP and Robert Thomas Securities, Inc. She also was a manager at The Disney Company. Mrs. Patch holds an MBA from Pepperdine University and a BS in Finance from Miami University of Ohio. She is a Series 7 and 63 Registered Securities Representative.
Daniel Schultz, Director of Business Development [email protected] • (617) 619-3368 Dan oversees Capstone’s national business development and industry coverage activities, working closely with current and prospective clients of the firm on matters related to corporate sales, recapitalizations, mergers & acquisitions and growth financings. In his role, Dan is able to deliver specific market intelligence to clients regarding M&A, financing, strategic, industry and competitive trends. Prior to spearheading the firm’s business development and market initiatives, he was a Vice President in Capstone’s M&A group, managing numerous successful transactions across a variety of industries. Dan also gained hands-on transaction experience as an investment banker at Headwaters MB. He started his career with Ernst & Young’s National Professional AABS practice and later worked in Assurance and Advisory Business Services in the Denver office. Dan received a BE in Biomedical Engineering with a Business Minor from Vanderbilt University. He earned an MBA and a Master of Accountancy from the Daniels College of Business at the University of Denver.
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ABOUT CAPSTONE PARTNERS
Capstone Partners LLC is a premier investment banking firm dedicated to serving For more information the corporate finance needs of middle market business owners, investors and about our expertise, creditors. The firm provides corporate sale & divestiture, merger & acquisition, private placement, corporate restructuring, valuation and financial advisory please visit services. Capstone maintains various industry specialties including one in the www.capstonellc.com Mapping, Modeling & Simulation sector. The firm also has a merchant banking capability to actively co-invest in transactions. Headquartered in Boston, Capstone has offices in Chicago, London, Los Angeles, Philadelphia, San Diego, Silicon Valley and Tampa.
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