Venture capital firm Sequoia Capital has signed a definitive agreement to acquire Faces Cosmetics from Everstone Capital, the Canada-based cosmetics and skincare products firm said in a press release.
The firms, however, did not disclose the size of the deal, which involves the transfer of rights to Faces' Canadian business, the brand and its international subsidiaries.
Following the acquisition, Faces' existing management team led by Sharmili Rajput will continue to drive the business forward, the release said.
“The Sequoia team will work with the Faces management to make significant investments and deploy operational expertise to unlock the brand’s full potential, as well as expand its portfolio and reach,” said Abhay Pandey, managing director, Sequoia Capital India Advisors.
Rajeev Shukla, managing partner at Everstone Capital, will continue to hold his personal stake in the company, the release added.
Faces Cosmetics India Pvt. Ltd, which is a subsidiary of Faces Canada Plc, reported a turnover of Rs 39 crore for FY16, as per data from the Registrar of Companies. It reported a loss of Rs 21 crore. However, in a statement issued on Wednesday, Faces said it reported brand sales of "over Rs 100 crore last year".
Faces was initially acquired by Indivision India Partners, a private equity firm backed by Future Capital, which invested $16.26 million in the entity for a 76.95% stake on a fully diluted basis, according to data from VCCEdge, the data research arm of VCCircle. Indivision is now managed by Everstone Capital after Future exited the business.
Everstone Capital's last exit from the Indivision portfolio was in September 2016, when it fully exited Centurm Capital.
Indivision had made investments in Asian Genco, Future E-commerce Infrastructure, Future Media India, Global Hospitals, Interarch Building Products, JS Hospitality Services, Pan India Food Solutions, Percept, Regen Powertech, Tikona Digital, Tops Security, VLCC, Lilliput Kidswear and Sula Vineyards, among others.
Everstone Capital has exited some of these companies, such as Global Hospitals, Lilliput Kidswear and Sula Vineyards.
Deals in cosmetics space
Recently, Dabur India Ltd made two acquisitions in Africa in the personal care and hair care space. Godrej Consumer Products, too, made several acquisitions in 2016, including Strength of Nature LLC, a hair care products company.
Sequoia Capital also owns a minority stake in Vini Cosmetics, which has been scouting for a strategic buyer.