| NEW YORK, March 27
NEW YORK, March 27 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.