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TPG exited most of its stake in Anastasia Beverly Hills as part of a debt restructuring, largely wiping out the private equity firm’s $600 million investment in the cosmetics company, according to people familiar with the matter.
TPG purchased about 38 percent of the beauty company from its founders in 2018, in a deal that was financed with a combination of debt taken on by Anastasia and preferred shares bought by TPG.
TPG now has a roughly 6 percent stake, one of the people said, all of whom asked not to be identified discussing private information.
Anastasia is “taking steps to align our capital structure with the underlying strength of our business and our resilient operational performance,” a spokesperson said in a statement. The company is working with its lenders to address its upcoming loan maturity, the spokesperson added.
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A representative for TPG declined to comment.
Anastasia Soare, who founded the company in 1997, is discussing options, including injecting roughly $225 million into the business as part of the restructuring, the people said. Talks also involve lenders taking equity positions and providing more debt, though a deal hasn’t been finalised.
The cosmetics firm had been operating under extended forbearance while its creditors held debt restructuring talks. In August, Moody’s Ratings and S&P each downgraded Anastasia after a missed loan payment that both said constituted a default.
Anastasia gained global prominence by selling eyebrow shaper products that were so popular that Soare became known as the “eyebrow queen.” She went on to build an empire with an array of beauty products with distribution through retailers such as Dillard’s, Macy’s, Nordstrom and Sephora.
Soare published a book in October telling her “story of building a billion-dollar beauty empire.”
By Allison McNeely and Laura Benitez
Learn more:
How Anastasia Beverly Hills Lost Its Footing
The influencer-favourite brand seemed on rocket-like trajectory in the 2010s, culminating in a reported $3 billion valuation in 2018. But trends have shifted, sales have slid, debt has mounted and its main investor, the private equity firm TPG Capital, is ready to move on.
