Beauty brand Carol's Daughter exploring sale of company -sources
NEW YORK, March 27
NEW YORK, March 27 (Reuters) - Carol's Daughter, known for its products for naturally curly hair, is exploring a sale of the company, according to two sources familiar with the matter.
The tiny company, with big backers including Jay-Z and Will Smith, is owned by private equity firm Pegasus Capital Advisors. It is being advised by Moelis & Co, said the sources, who declined to be identified as the process is private.
Pegasus did not immediately return a call seeking comment. Moelis declined to comment.
Carol's Daughter, which founder Lisa Price named for her mother, makes products for curly or wavy hair as well as skin lotions and other goods. It has its own retail stores and is sold through national chains such as LVMH's Sephora and Macy's. It has annual revenue of up to $40 million, the sources said.
The brand has partnered with R&B singer Mary J. Blige and musician/model Solange Knowles. And according to media reports, it has also counted among its investors the superstars Jay-Z, Will Smith and his wife Jada Pinket Smith.
The brand could fit into the portfolios of cosmetics makers including L'Oreal, Estee Lauder Cos Inc and Procter & Gamble. Its use of natural ingredients and appeal to multi-cultural consumers make it attractive, said one of the sources.
Still, beauty brands have not always found new homes. Perricone MD and Tarte, for example, were on the block but did not get sold. Organix Hair Care, which also makes hair and skin care products, is also up for sale.