Eurazeo Sells Majority Stake in Nest To North Castle Partners

Global Investment company Eurazeo has sold its majority ownership position in Nest New York in a transaction that values Nest at approximately $200 million.

Under the terms of the transaction, an investor group led by North Castle Partners will purchase a majority stake in the home fragrance company, with Eurazeo and Nest Founder Laura Slatkin retaining minority ownership positions.

Following the close of this transaction, Eurazeo's invested equity capital will yield a return of approximately 2.7x.

Eurazeo’s Brands Division launched in May 2017 and Nest was its first investment. Under Eurazeo’s management, Nest’s leadership team accelerated product innovation, expanded brand awareness and significantly increased the brand’s digital penetration. As a result, overall brand sales tripled, direct-to-consumer sales increased 10-fold and EBITDA margins significantly expanded, said Eurazeo.

“Since I founded NEST in 2008, I have been fortunate to have exceptional partners that have helped the brand solidify its position as one of the world’s most trusted and highly regarded fragrance brands,” said Laura Slatkin, founder of Nest New York.  “I am deeply grateful for Eurazeo’s partnership and expertise, which have enabled the business to flourish and deliver impressive growth over the past five years. As the brand embarks on its next chapter of growth, I look forward to partnering with North Castle and reuniting with Rich Gersten, whom I have had the pleasure of working with in the past.”

According to Maria Dempsey, CEO, Nest seen “explosive growth over the past several years due to a laser-focus on product innovation, new customer acquisition, digital expansion and creative storytelling. This significant growth has been achieved with our exceptional team of professionals, strong retailer partnerships and a highly collaborative relationship with Eurazeo.”

Dempsey added, “We are thrilled to be working alongside the North Castle team on this next phase of growth.”

Nest represents North Castle’s second beauty and personal care investment in the last two years. North Castle's portfolio also includes Glow Recipe as well as Barry's Bootcamp, CR Fitness, HydroMassage, BlueRoot Health, and more.

The transaction is expected to close at the end of November.