Paine Forms Cradle Holdings, a New Cosmetics Entity

Fox Paine & Company, LLC, a San Francisco-based private equity firm, announced the creation of Cradle Holdings, Inc., a new New York-based cosmetics business entity. The business was formed to acquire and nurture promising and well-established prestige beauty companies using expertise to maximize growth and establish synergies of management and operations, according to executives. The first acquisitions include Erno Laszlo, located New York, and Penhaligon’s in London.

Fox Paine & Co. executives said that given these two solid platforms in the U.S. and Europe, Cradle is well positioned for long-term internal growth as well as future acquisitions.

Robert A. Nielsen, formerly the group president of Estee Lauder Companies, has been named chief executive officer of Cradle Holdings. Mr. Nielsen brings 46 years of experience in the cosmetic and fragrance industry, including the launch and leadership of many of Estee Lauder’s most successful brands: Aramis, Clinique, Prescriptives, Tommy Hilfiger, La Mer, Jo Malone and Kate Spade Beauty.

“We are incredibly excited about our partnership with Fox Paine, and our acquisition of these two exceptional brands,” said Mr. Nielsen. “Laszlo, the first dermatological skin care line, was once the top brand in U.S. specialty stores; Penhaligon’s, for over 130 years, has been the UK’s premier destination for toiletries and gifts. The heritage of these lines, coupled with the quality of the products and the loyal customer base, will be our platform for building each brand’s success.”

Jane Terker has been named president and chief operating officer. She is a former founder of JTP Associates Ltd., a business development and marketing company, which represents clients such as J Crew Inc., M.D. Skincare and Kiss My Face. Previously to that position, she served as president, Donna Karan Beauty Co. Even Earlier, Terker served as vice president, marketing at Cosmair/L’Oreal and was responsible for overseeing Ralph Lauren Fragrances, Giorgio Armani Parfums, Paloma Picasso Fragrances, Guy Laroche and Cacherel.

The leadership team is further complemented by three top industry executives: Phil Theiss, vice president, chief financial officer, formerly of Estee Lauder and most recently CFO of Natural Organics; Lauren Freedman, vice president, sales, most recently serving with Prescriptives at Estee Lauder; and Michael Brillhart, vice president, international, whose experience includes responsibilities for Parfum Christian Dior International and Elizabeth Arden International.