Summer Fridays Announces Growth Investment From TSG Consumer Partners
Summary
Financial terms of the deal were not disclosed.In January, The Business of Beauty identified the brand as a top M&A target, having capped off a banner year in 2023 wherein an instant-hit shade extension to its Lip Butter Balm helped push retail sales to $150 million. This year, the brands forecast retail sales are expected to reach $200 million.Summer Fridays is known for its premium products that blur the lines between skincare and makeup, and has a canny knack for identifying the next big thing in beauty. But a blockbuster transaction hasnt been announced since K18s and Dr Dennis Grosss sales to Unilever and Shiseido at the end of last year.With so much makeup in the market, Summer Fridays, as a brand with authority in skincare, likely stood out enough to find a big-ticket growth partner.Summer Fridays has been incredibly successful at Sephora, said Priya Venkatesh, global chief marketing officer at Sephora, describing the lip butters as a sensation, and saying their products are approachable and fun. In 2010, it sold prestige cosmetics line Smashbox to Est\xe9e Lauder having tripled its revenue and improved its profit from breakeven to roughly 20 percent EBITDA in four years.Hewitt said she and Ireland were particularly inspired by the success of It Cosmetics, which received a minority investment from TSG in 2012, and sold to LOr\xe9al for $1.2 billion in 2016.We have so much more we want to do with Summer Fridays, said Hewitt, adding that her and Ireland would know where [its] perfect home is in the coming years.Ireland and Hewitt said their top priorities were continued global expansion and deepening its penetration in the skincare category, as well boosting headcount. We have these sellout viral moments, [but] the focus really at our core is how we are creating products that people will love today, and for decades to come.Adding to successful franchises like Jet Lag and its lip offering is part of that movement, said Ireland, as well as focussing on community events and engagement as the brand grows globally.Were so excited to be able to give [our customers] the products that they want, no matter where they are, she said.Sign up to The Business of Beauty newsletter, your complimentary, must-read source for the days most important beauty and wellness news and analysis.