Eurazeo offered a majority stake in perfume firm Nest to an investor group led by North Castle Partners in a deal valuing the corporate at roughly $200 million.WHO: Nest Fragrances was based in 2008 by perfume authority Laura Slatkin. Initially launched as a house perfume model, the enterprise has expanded its class choices throughout classes to rework into a life-style model that integrates aromatherapy and wellness into its product growth. The model’s merchandise are offered by means of a rising community of magnificence specialty shops, luxurious malls, boutiques and spas, and the model’s on-line hub.Eurazeo is a number one international listed funding firm based mostly in Paris and New York with a diversified portfolio. The agency covers a broad spectrum of personal fairness methods by means of its 5 enterprise divisions Eurazeo Capital, Eurazeo Croissance, Eurazeo PME, Eurazeo Patrimoine, and Eurazeo Brands. The present magnificence portfolio consists of Nest Fragrances, Pat McGrath, Aroma-Zone, and Gisou.North Castle Partners is a number one personal fairness agency centered on investments in consumer-driven product and repair companies that promote wholesome, energetic, and sustainable residing. North Castle is a hands-on, value-added investor in high-growth, middle-market corporations. The present magnificence and wellness portfolio consists of well-known manufacturers corresponding to Glow Recipe and HydroMassage.WHY: Under Eurazeo’s administration, Nest’s management staff accelerated product innovation, expanded model consciousness, and considerably elevated the model’s digital penetration.Under the brand new funding, the primary focus will likely be worldwide and class enlargement, with Nest launching in the UK final 12 months by means of Cult Beauty and just lately making its debut in Selfridges. Elsewhere, it’s gearing up to introduce the model in Sephora Middle East earlier than increasing additional into Europe and shifting into China, in addition to having a deeper concentrate on wellness.IN THEIR OWN WORDS: Laura Slatkin, Founder of Nest New York, stated, “Since I based Nest in 2008, I’ve been lucky to have distinctive companions which have helped the model solidify its place as one of many world’s most trusted and extremely regarded perfume manufacturers. I’m deeply grateful for Eurazeo’s partnership and experience, which have enabled the enterprise to flourish and ship spectacular progress over the previous 5 years. As the model embarks on its subsequent chapter of progress, I look ahead to partnering with North Castle and reuniting with Rich Gersten, whom I’ve had the pleasure of working with in the previous.”Maria Dempsey, CEO of Nest New York, stated, “Nest New York is a beloved perfume life-style model that has seen explosive progress over the previous a number of years due to a laser-focus on product innovation, new buyer acquisition, digital enlargement and artistic storytelling. This important progress has been achieved with our distinctive staff of execs, sturdy retailer partnerships and a extremely collaborative relationship with Eurazeo. We are thrilled to be working alongside the North Castle staff on this subsequent section of progress.”Jill Granoff, Managing Partner of Eurazeo and CEO of Eurazeo’s Brands Division stated, “Laura, Maria and the Nest staff have been exemplary companions, and collectively, we’ve constructed the Nest model and pushed great worth creation. We look ahead to working with North Castle Partners on the subsequent chapter of Nest’s progress to leverage the Company’s sturdy basis and increase the enterprise globally.”Hemanshu Patel, Partner at North Castle Partners, famous, “We’re very excited to accomplice with Eurazeo and the administration staff at Nest and welcome the Company into North Castle’s household of well being and wellness centered manufacturers which can be leaders in their respective classes. It’s an excellent state of affairs for us with Rich Gersten, Beauty Industry Advisor at North Castle Partners, having labored with Laura and Nest in the previous.”Rich Gersten added, “I’ve at all times been an enormous fan of the model and its potential, and it’s thrilling to accomplice with Nest as soon as once more at this inflection level to increase the model’s attain throughout classes and geographies.”DETAILS:An investor group led by North Castle Partners acquired a majority stake in Nest Fragrance in a deal that valued the corporate at roughly $200 million.Following the shut of this transaction, Eurazeo’s invested fairness capital will yield a return of roughly 2.7x.Eurazeo and Nest founder Laura Slatkin will retain minority stakes in the enterprise. North Castle doesn’t plan to change the manager management staff, with Maria Dempsey and founder Laura Slatkin remaining on as CEO and Executive Chairman, respectively.Brand gross sales tripled, direct-to-consumer gross sales elevated tenfold, and EBITDA margins considerably expanded since 2017 when Eurazeo’s Brands division launched with Nest as its debut funding.Perella Weinberg Partners LP acted as monetary advisor to Nest.In December 2017, Tengram offered its majority stake in Nest Fragrances for $70 million to Eurazeo in its first branded magnificence deal. Founder and Executive Chairman Laura Slatkin additionally reinvested in the enterprise as a part of the deal.Tengram invested in Nest in 2012 when it bought management of the corporate from its founder, Laura Slatkin.In October 2021, Glow Recipe took its first outdoors funding in a take care of personal fairness agency North Castle Partners for a minority stake in the enterprise.
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