Seller: Bertram Capital, TA Associates, Paula’s Choice
Sector: Health and Beauty
Bertram Capital to Exit Paula’s Choice
FOSTER CITY, CA: June 23, 2021 – Bertram Capital (“Bertram”), in conjunction with TA Associates, announced the signing of a definitive agreement to sell Paula’s Choice (the “Company”), a leading digital-led skin care brand, to Unilever, one of the world’s leading suppliers of Beauty & Personal Care, Home Care, and Foods & Refreshment products. The transaction is expected to close in the third quarter of 2021. Terms of the transaction were not disclosed.
In 2012, Bertram Capital partnered with Paula Begoun, internationally renowned beauty expert and founder of Paula’s Choice, to become the Company’s first institutional investor. Under Bertram’s stewardship, Paula’s Choice grew into one of the largest digitally native beauty brands in the world. Bertram subsequently recapitalized the Company in 2016 with TA Associates. Today the business has a broadly diversified geographic reach, a methodically curated product offering, and a loyal customer base supported by a global direct-to consumer (“DTC”) model.
“Bertram and its in-house technology team, Bertram Labs, were the ideal partner for Paula’s Choice when we sought our first outside investor. Together we’ve achieved more than I ever thought possible,” said the Company’s founder, Paula Begoun. “The Bertram team, led by Ryan Craig and Tom Beerle, put us on a path that led to this exciting new chapter with Unilever.”
“We are grateful to have found a partner the caliber of TA Associates and Jeff Barber, who had the vision and resources to help bring Paula’s Choice radically truthful brand of skin care to the world,” said Ryan Craig, Partner at Bertram Capital. “TA Associates and the Company’s management team, led by its CEO, Tara Posely, helped us fully realize the potential of Paula’s Choice and its unique digital platform.”
The M&A market for healthcare companies continues to strengthen in 2021 and ahead of the projected increases in US capital gains taxes. There is unprecedented capital in market, the lowest interest rates in US history and strong acquirer motivations for high quality healthcare companies. Across the continuum of care, buyers and investors are looking for well established, profitable businesses and offering strong valuations and options for management.
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