(Reuters) - Private equity firm TPG Capital is near an agreement to acquire a minority stake in Anastasia Beverly Hills, valuing the U.S. cosmetics company at close to $3 billion, including debt, people familiar with the matter said on Tuesday.
TPG outbid other suitors for Anastasia, and could clinch a deal as early as this month, the sources said, asking not to be identified because the negotiations are confidential.
Negotiations could still end unsuccessfully, the sources added.
TPG declined to comment, while Anastasia did not immediately respond to a request for comment.
Part of the rationale of a minority stake deal is to ensure that the company’s founder and CEO Anastasia Soare, upon whose social-media savvy the brand continues to depend, remains in control.
Launched in 1998, Anastasia Beverly Hills first shot to prominence pioneering eyebrow makeup products. The products were later adopted by social-media stars, including Kim Kardashian.
Many giants of the health and personal care world have been hit hard by declining footfall in traditionally reliable sales channels such as malls and department stores. Anastasia, however, sells its products primarily online.
For TPG, the deal would come hard on the heels of another large investment in the same category, after it agreed earlier this month to acquire a minority stake in skin care company Rodan + Fields.
Reporting by Harry Brumpton and Joshua Franklin in New York; Editing by Jonathan Oatis and Chris Reese