TPG fund in advanced talks to buy E.I.f. Cosmetics

• Deal could be worth $200-$300 million

• E.L.f. partly owned by TSG Consumer Partners

• Financo hired as adviser

 

E.l.f, which stands for eyes, lips and face, could fetch $200 million to $300 million in a sale, two of the people said, asking not to be named because the matter is not public.

The brand had hired investment bank Financo to advise on a sale. Private equity firm TSG Consumer Partners holds a minority stake in the brand.

E.l.f, TSG, TPG and Financo declined to comment.

E.l.f. sells affordable cosmetics at retailers like Target Corp. The brand’s lipstick and mascara cost around $3 each.

L’Oreal SA previously looked at buying E.l.f but decided to acquire makeup brand Urban Decay instead last year, the sources said.

Mergers and acquisitions in the beauty sector have been relatively quiet in recent months, though large deals have included L’Oreal’s acquisition of Chinese facial mask brand Magic Holdings for $845 million, and Revlon Inc’s $660 million acquisition of salon hair care products company the Colomer Group.

Olivia Oran is a reporter for Reuters News in New York