Global skincare company Crown Laboratories, a Hildred Capital Management LLC portfolio company, and global consumer-focused private equity firm L Catterton have entered into a definitive agreement under which Crown will acquire StriVectin, they announce.
The transaction is expected to close by mid-September 2021 and is subject to regulatory approvals and other customary closing conditions. Terms of the transaction were not disclosed. Other equity sponsors in Crown include Greenspring Associates and Montreux Growth Partners.
Upon completion of the transaction, StriVectin’s products will become part of Crown’s new Premium Skincare Division and will operate as a wholly owned subsidiary of Crown Laboratories. StriVectin’s President, Cori Aleardi, will become President and Chief Commercial Officer of Crown and will join the Crown Executive Leadership Team. StriVectin will continue to be based in New York City.
“Partnering with StriVectin is an exciting and significant next step in diversifying and scaling our organization. StriVectin has assembled a truly impressive team, a proven business model, and a premier product portfolio that is beloved by its customers. We are particularly excited that Cori will be assuming a senior executive role at Crown, helping to guide the merged businesses, and we think the combined talents of both teams will enable us to accelerate growth across all our product areas. The addition of StriVectin to Crown’s portfolio enriches our focus on partnering with our customers throughout their lifetime skin health journey.”
— Jeff Bedard, Crown Laboratories CEO
“We are excited to build on our success in this next chapter as StriVectin continues to redefine the science of skincare and changes the way people feel about their skin. As part of Crown, StriVectin will benefit from additional resources to expand infrastructure, support future growth, and deliver on our commitment to provide next generation skincare to every generation and put the science of skin health first.”
— Cori Aleardi, President of StriVectin
The acquisition strengthens Crown’s overall skincare product portfolio:
- Crown Aesthetics, maker of SkinPen, the first FDA-cleared microneedling device.
- Crown Therapeutics, maker of PanOxyl, the #1 acne wash; Sarna, the #1 Dermatologist recommended topical anti-itch brand and National Seal of Acceptance from the NEA; Blue Lizard® Australian Sunscreen, the #1 Pediatrician recommended mineral-based sunscreen brand.
- NEW Crown Premium Skincare will include StriVectin, comprised of a broad range of award-winning skincare solutions for all skin types, tones, and ages, including TL Advanced Tightening Neck Cream Plus, the #1 selling cream exclusively for the neck and décolleté, and Vita Liberata, a multiple award-winning sunless tanning brand
“On behalf of Hildred, Greenspring and Montreux, I am delighted to bring Crown and StriVectin together to create a world-class, comprehensive premium skincare portfolio and to welcome Cori and her colleagues to our team. Both of these companies are generating impressive growth, and the opportunity for complementary growth between the two organizations is tremendous. The StriVectin portfolio complements Crown’s current skincare offering and expands the combined organization’s potential to grow and drive further product development, which is the heartbeat of any organization.”
— David Solomon, Hildred Managing Partner and Chairman of the Board for Crown Laboratories
“When L Catterton invested in StriVectin in 2009, we saw a fantastic opportunity to transform a niche product into an iconic premium skincare brand, changing the game in beauty with a scientific approach to formulation. Working together with the talented management team, we established StriVectin as the largest independent brand in the U.S. prestige skincare market with broad geographic and multi-generational appeal. We are pleased to have played a role in their dramatic growth and are confident that Crown is the right partner for StriVectin as they strive to continue their strong growth and reach their next level of success.”
— Avik Pramanik, a Partner of L Catterton’s Flagship Buyout Fund
“L Catterton’s support of StriVectin showcases the firm’s expertise as a brand-builder. They were true partners throughout the brand journey, bringing strategic, operational, and industry expertise to foster innovation, growth, and market expansion.”
— Joan Malloy, Chief Executive Officer of StriVectin
Launched in 2002, StriVectin is ranked the most effective anti-aging skincare brand by consumers. L Catterton has partnered with management to drive significant growth and value creation through a strategic plan focused on marketing and operational enhancements. Together with L Catterton, StriVectin:
- Expanded its consumer base to include all age demographics, rapidly attracting millennials, while growing its large and highly loyal Gen X and baby boomer base;
- Drove continuous innovation, powered by a barrier-breaking scientific approach, resulting in a highly efficacious, expertly calibrated, and 100% clinically tested product portfolio;
- Transformed its distribution into a truly omni-channel strategy, allowing the brand to be available wherever the prestige consumer shops;
- Prioritized digital marketing to drive awareness and trial, resulting in a three-year retail sales compound annual growth rate of over 20%; and
- Drove operational efficiency to significantly enhance margins and drive profitability.
L Catterton has significant experience investing globally in the beauty and personal care category. Current and past investments include Function of Beauty, IL MAKIAGE, TULA, Steiner Leisure, Intercos, Marubi, S.p.A, Elemis, and many others.
[Source(s): Crown Laboratories Inc, PR Newswire]