San Francisco, CA
www.rodanandfields.com

Sales: $1.5 billion.

Key Personnel: Katie Rodan, co-founder; Kathy Fields, co-founder; Diane Dietz, president and chief executive officer; Chris Newman, chief financial officer; Elisabeth Charles, chief marketing officer; Heidi Wissmiller, chief field operating officer; Lynn Emmolo, chief global officer; Bryan Wayda, chief supply and service officer; Paige Gruemmer, vice president, human resources; Amnon Rodan, chairman.

Major Products: Rodan + Fields skin care products.

Comments: Private equity loves beauty. In May, Rodan + Fields announced that TPG Capital had made a strategic minority investment in the company. According to the companies, TPG’s investment will help Rodan + Fields continue to accelerate its next phase of growth as it transforms the skin care industry with its dermatology-inspired skin care products, disruptive consumer connected commerce model and powerful consultant community. Additional terms of the transaction were not disclosed.

The minority investment by TPG will provide Rodan + Fields with access to best-in-class business building expertise, capabilities and resources as the brand continues its path of disruptive growth domestically and in new markets across the globe. The founders, Doctors Katie Rodan and Kathy Fields, will remain at the heart of the brand and committed to their vision, while the company’s senior leadership team will keep leading the strategy for growth and day-to-day operations.

“TPG’s successful track record growing iconic brands and their belief in our disruptive model, innovative products and powerful independent consultant community make them an excellent partner,” said Diane Dietz, CEO and president of Rodan + Fields. “We are energized by the opportunities that lie ahead of us as we expand domestically and globally and look forward to optimizing our strengths with TPG’s expertise.”

“As a firm with a history of investing in businesses that are fundamentally changing their industries, we see Rodan + Fields as being at the intersection of emerging consumer trends and technology disruptions,” said Jim Coulter, co-CEO and co-founder of TPG. “This is exactly the kind of partnership we look for—an outstanding brand with proven success, an experienced and talented management team, and significant runway for growth.”

This isn’t the first beauty investment for TPG. Four years ago, the company acquired interests in Beautycounter and e.l.f. Beauty. And now, TPG is said to be in talks to acquire a minority stake in Anastasia Beverly Hills.

But in Rodan + Fields, TPG has a real blue chip. The company maintains it was the No. 1 skin care brand in North America in 2017, based on data from Euromonitor International.

“We are incredibly honored to be the No. 1 skin care brand in the US for two consecutive years, and now, in North America,” said Dietz. “This is a testament to our products that deliver visible results, our personalized, direct-to-consumer approach and the entrepreneurial power of our consultant community. We look forward to the continued momentum and sharing our life-changing skin care with more consumers globally.”

More gains are sure to come as CFO Chris Newman projects double digit growth for the next five years.

“(We) expect to continue to be a global leader pushing the boundaries of skin care and social commerce,” he added.

Still, angry consumers are everywhere these days, so it’s no surprise that R+F faces a class-action lawsuit filed on behalf of four plaintiffs who claimed the company’s Lash Boost burned their skin and led to swelling around the eye. Lash Boost is a $150 eyelash growth serum that contains isopropyl cloprostenate.

In a statement, R+F said it stands behind the safety and efficacy of Lash Boost.

“Many of the legal allegations involve comparisons to unrelated products, including prescription products that have different ingredients and formulations. We are going to let the specifics of our legal defense play out in court.”