Press release, February 22, 2005
Berkshire Partners and JH Partners Complete Recapitalization of MD Beauty.
San Francisco, CA, February 22, 2005 -- Private equity firms Berkshire Partners LLC and JH Partners LLC today announced the close of a $240 million recapitalization of MD Beauty, Inc., one of the fastest growing personal care companies in the U.S.
"We are delighted with the progress management is making at MD Beauty," said Ross M. Jones, Managing Director at Berkshire Partners. "This recapitalization positions the company well and returns value to investors. We remain committed to building this exciting industry-leading company."
"MD Beauty continues to deliver exceptional growth in the rapidly growing market for mineral-based cosmetics and cosmeceuticals," said John Hansen, President of JH Partners. "For fifteen years, we've partnered with management to help the company to develop strong brands, recruit top management, and execute a multi-channel distribution strategy. It's a great company and an excellent investment."
"MD Beauty's innovative products have forever changed the cosmetics and skin care market," said MD Beauty President and CEO Leslie Blodgett. "We continue to experience tremendous growth as we reach new customers through an expanding number of distribution channels. We appreciate the continued support of both Berkshire Partners and JH Partners."
Today's transaction is MD Beauty's second recapitalization in less than a year following the Company's continued rapid growth. In June 2004 Berkshire Partners and JH Partners together led a recapitalization in which both firms made substantial equity investments and which made Berkshire Partners an equal partner with long-time investor JH Partners. As part of today's recapitalization, both firms returned to their investors 100% of the capital invested in the June transaction.
The senior debt financing for the recapitalization was led by BNP Paribas and York Street Capital Partners provided the subordinated debt.
About MD Beauty
Headquartered in San Francisco, California, MD Beauty is one of the fastest growing personal care companies in the U.S. The company is a marketer of branded cosmetics and skin care products focused primarily within the health and beauty and the cosmeceutical markets. MD Beauty markets products under a portfolio that consists of recognized brands such as Bare Escentuals, including its i.d. bareMinerals line, and md formulations. The Company markets its brands through direct response television (both long form infomercials and QVC), 23 company owned boutiques, premium wholesale accounts, such as Ulta and Sephora, and spas and salons. Additional information regarding MD Beauty may be found at www.bareescentuals.com.
About Berkshire Partners
Berkshire Partners has invested in mid-sized private companies for the past twenty years through six investment funds with aggregate capital commitments of approximately $3.5 billion. The firm's investment strategy is to seek companies that have strong growth prospects and to partner with talented management teams who are interested in being owners of the companies they operate. Berkshire has developed specific industry experience in several areas including consumer products, industrial manufacturing, transportation, communications, business services, and retailing and related services. Berkshire has been an investor in over 80 operating companies with more than $12.0 billion of acquisition value and combined revenues in excess of $15.0 billion. Additional information may be found at www.berkshirepartners.com.
About JH Partners
JH Partners is a San Francisco-based private equity firm focused on investments in growth-oriented middle market consumer products and services companies. The firm distinguishes itself among private equity firms in that each of its principals has senior-level operating experience building middle-market consumer related businesses. JH Partners has been instrumental in aiding the growth of powerful consumer brands, including Peet's Coffee & Tea (NASD: PEET), Bare Escentuals, Performance Bicycle Shop, Bell Helmets, and Design Within Reach (NASD: DWRI), among others. In 2004, the company raised $200 million in its first institutional fund. Additional information may be found at www.jhco.com.