Castanea Partners Announces Investment in Urban Decay

Mon Mar 30, 2009 8:00am EDT

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Makes Majority Control Investment in Unique Cosmetics Brand
NEWTON, Mass.--(Business Wire)--
Castanea Partners today announced that it has completed the acquisition of Urban
Decay Cosmetics, LLC from The Falic Group. Headquartered in Newport Beach, CA,
Urban Decay is a leading premium color cosmetic brand known for its alternative
spin on beauty, imaginative, high-quality products, and unique artistic style. 

Founded in 1996, Urban Decay immediately established itself as a trend-setting
cosmetic company that revolutionized the way make-up companies name, package and
market their products. The brand, known for its innovative, bold packaging and
colors, always stays true to its "Beauty with an Edge" mantra. Urban Decay
appeals to all ages and its broad base of loyal customers is diverse, ranging
from trendsetters to mainstream cosmetic consumers 

Urban Decay markets its products primarily through domestic and international
specialty beauty retailers, including Sephora and Ulta Beauty, better department
stores, and through its website (www.urbandecay.com). The company has over 300
color cosmetic SKUs in all major cosmetics categories with its largest category
in eye products. 

Castanea will support the Company as it continues to strengthen the distinctive
Urban Decay brand, broaden its existing product line and expand into new
markets. Considered among the best teams in the industry, Tim Warner, Wende
Zomnir, and Eric Jimenez will continue in their current roles as General
Manager, Co-Founder and Executive Creative Director, and Worldwide Retail
Director and International Make-up Artist, respectively. 

"Urban Decay is a great example of the types of entrepreneurial, growth-oriented
businesses we seek to invest in at Castanea Partners," said Brian Knez,
Co-Managing Partner of Castanea Partners. "We are very excited to partner with
Tim, Wende, Eric and the rest of the Urban Decay team and look forward to
working with them to help realize the brands full growth potential." 

"Castanea brings a wealth of brand knowledge and operating expertise which made
them our preferred choice in selecting a partner," said Tim Warner. 

Added Wende Zomnir, "As we continue to grow and add new channels of
distribution, Castanea will help us build the infrastructure to meet that demand
and realize exciting growth opportunities." 

"Our customers love to have fun with their make-up, demand high quality, and
appreciate the edgy nature of the brand. Castanea will help us support our
wholesale customers and our growth at the retail level," said Eric Jimenez. 

Urban Decay was advised by Piper Jaffray & Co. Terms of the transaction were not
disclosed. 

About Castanea Partners

Castanea Partners is a private equity firm that invests in small and middle
market companies in publishing, education, training, consumer brands, specialty
retail, and marketing services. The firm has extensive operating and private
equity investment experience in these sectors and, working closely with
management, seeks to optimize business performance and realize attractive
returns. 

Castanea participates in leveraged buyouts, growth and acquisition equity
investments, and operationally challenging situations. The firm is currently
investing from its third fund, a $575 million fund that targets companies with
enterprise values up to $250 million. 

For more information, visit www.castaneapartners.com or contact Andrew G.
Collina at 617.630.2441 or acollina@castaneapartners.com . 

All company, brand, or product names contained in this document may be
trademarks or registered trademarks of their respective holders.



Castanea Partners
Andrew G. Collina, 617-630-2441
acollina@castaneapartners.com

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