Navigate this market better. Subscribe for FREE stock alerts and information.

Monday, November 10, 2014

Cosmetics company Too Faced up for sale -sources, (NASDAQ: ULTA)

Too Faced Cosmetics LLC, best known for its Better than Sex mascara, bronzers and false lashes, is exploring a sale that could value it at several hundred million of dollars, according to several people familiar with the matter. The Irvine, California-based cosmetics company, which is partially owned by private equity firm Weston Presidio, is working with investment bank Piper Jaffray on the sale process, which is expected to kick off early next year, the people said.The sources declined to be named because the matter is private. Too Faced Cosmetics, Weston Presidio and Piper Jaffray did not respond to requests for comment.Founded by business partners Jerrod Blandino and Jeremy Johnson in 1998, Too Faced sells its products at retailers such as Sephora USA Inc and Ulta Salon Cosmetics & Fragrance Inc . It generates annual earnings before interest, tax, depreciation and amortization (EBITDA) of around $25 million, one of the people said.The beauty sector has seen a number of high-profile M&A transactions and investments this year, including L'Oreal SA's acquisitions of multi-cultural beauty brand Carol's Daughter and color cosmetics company NYX Cosmetics; Carlyle Group LP's investment in hair care company Vogue International; and TPG Growth's majority stake in affordable cosmetics brand e.l.f. cosmetics.

Ulta Salon, Cosmetics & Fragrance, Inc. (Ulta) is a beauty retailer, which provides one-stop shopping for prestige, mass and salon products and salon services in the United States. Shares of ULTA traded higher by 1.91% or $2.33/share to $124.08. In the past year, the shares have traded as low as $80.35 and as high as $132.72. On average, 1002090 shares of ULTA exchange hands on a given day and today's volume is recorded at 627568.