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Q1 2015 PERSONAL CARE PRODUCTS & SERVICES

CONTACTS Tracy Patch Vice President (949) 460-6432 [email protected] David Bench Managing Director (949) 460-6431 [email protected] Daniel Schultz Director of Business Development (617) 619-3368 [email protected]

MERGERS & ACQUISITIONS

M&A activity in the personal care industry was robust in 2014, with 81 transactions reported for

the year, a preliminary figure that will surely rise as additional transactions are recorded for the

year. The elevated level of activity in the industry is presenting a unique opportunity for private

business owners looking to exit their business or team with a growth partner. In fact, as

valuations are generally on an upswing, many sellers have more options today than in the past

five years to extract value from their companies.

Much of the recent activity in the segment involves middle market companies. In an industry

that depends on new product development and introductions, these target companies can offer

buyers new and innovative products and services, as well as access to growing market niches.

Among buyers, synergy is the new black, and the potential for synergies vis-à-vis acquisitions can

help strategic buyers justify premium valuations. At the same time, private equity buyers remain

very active in the industry, backed by readily available financing, low interest rates, strong

fundraising and plenty of cash to invest.

2015 OUTLOOK

While 2014 was a banner year for mergers & acquisitions, activity is projected to be even

stronger going into 2015. This expectation is a result of improved CEO confidence. The U.S.

economy is positioned for growth, most economic indicators have now fully recovered from the

recession and more people are re-entering the labor force with better prospects for

employment, all contributing to a healthy environment. But with the market likely near its peak,

many business owners are now faced with the choice to “grow” ̶ take risks and expand the

business, or “go” ̶ sell now to avoid the next downward cycle.

Personal Care Industry M&A Transactions

Sources: Capital IQ, Capstone Partners LLC research

70 69

94

73 67

75

85

100

77 81

0

20

40

60

80

100

120

2005 2006 2007 2008 2009 2010 2011 2012 2013 2014

INDUSTRY GROWTH & TRENDS

The U.S. personal care industry is projected to grow at an compound rate of 5%

annually between 2014 and 2018. Demand for personal care products and services is

driven by population growth, consumer confidence and spending and changing

consumer preferences. While many of the products in the category are considered

necessities and are purchased regardless of economic conditions, others are

considered luxury items and their sales are impacted by changes in the economy.

Personal care services, which include spa and salon services and cosmetic

procedures, were once reserved for the luxury market but now appeal to – and are

accessible to – the mass market. As a result, sales of such services are rising.

The performance and profitability of individual companies depends on the

effectiveness of their product innovations, sales and marketing efforts, and the

efficiency of their operations. Larger companies in the industry often enjoy scale

advantages in purchasing, manufacturing, distribution and marketing. However,

small and mid-sized companies compete effectively by offering specialized products

that appeal to niche markets. Innovative brands, companies with strong potential

based on prolific R&D results, mass brands with broad appeal and recognized brand

names are all in demand among industry buyers. Several trends are contributing to

the industry’s attractive growth prospects, including the following:

Aging Population is Driving Demand - The aging U.S. population has created

substantial consumer demand for anti-aging face, hair and body care

products and services. The U.S. population age 65 and over is expected to

increase more than 35% between 2010 and 2020, driving demand for such

purchases. This growing segment has a higher-than-average level of

disposable income which they are willing to spend on their appearance. The

advent of social media has also elevated consumers’ awareness of their looks

and has increased their desire to look good. Along with this trend, there has

been a rise in the sale of cosmeceuticals, a combination of cosmetics and

pharmaceuticals. Cosmeceuticals include skincare anti-aging formulations,

products for stress relief and sun protection, as well as haircare and makeup

products that beautify as they address health problems or concerns. As the

senior population increases in size and spending power, the focus on anti-

aging products will rise.

New Target Markets - The men's, tweens (9- to 12-year-olds) and ethnic

markets represent growth opportunities for personal care product

manufacturers. While the primary focus for personal care products has

traditionally been women, these segments remain relatively untapped for

products designed to meet their needs, and are considered good acquisition

targets to build out product lines and brand offerings.

Growth Opportunities in Global Markets - Emerging economies with

expanding middle classes are presenting solid growth opportunities for U.S.-

based personal care companies. Attractive foreign markets include China,

Russia and India. Rising income levels in these and other developing

countries are creating more consumers willing to spend on personal care

products, which they consider an "affordable luxury."

Capstone Partners LLC 2

Personal Care Products & Services Q1 2015

SAMPLE ACQUIRER PROFILE: L’OREAL

L’Oréal S.A. is the world’s largest cosmetics maker and offers its products under the

L’Oréal Professionnel, Red Ken, Kérastase, Matrix, L’Oréal Paris, Garnier, Maybelline,

Softsheen Carson, Essie, Lancôme, Giorgio Armani, Yves Saint Laurent, Biotherm,

Kiehl’s, Ralph Lauren, Shu Uemura, Cacharel, Helena Rubinstein, Diesel, Clarisonic,

Viktor & Rolf, Urban Decay, Vichy, La Roche Posay, SkinCeuticals, Innéov, Sanoflore,

and Roger & Gallet brand names.

Acquisitions have been a focus for L’Oréal for years. Jean-Paul Agon, the Paris-based

company’s chairman has said that he is “confident that we will find other

opportunities this year or next… this is the story of L’Oréal. We are pretty good at

seizing brands that are at the early stage of development and making them huge.”

Acquisitions include the following and are expected to remain a strategic focus for

L’Oréal in 2015.

In October 2014 L’Oréal announced the acquisition of Carol’s Daughter, the

manufacturer of hair and beauty products for women of color sold through specialty

stores, mass retailers and online. The acquisition comes about a month after Carol’s

Daughter’s retail arm exited Chapter 11 bankruptcy, which generated approximately

$27 million in sales in the twelve months ending September 2014. The acquisition is

expected to allow L’Oreal to build on its dedicated multi-cultural beauty division.

In September 2014, L’Oréal acquired Sayuki Custom Cosmetics for an estimated $150

million. Founded in just 2012, Sayuki manufactures and sells cosmetics and skincare

products, and was the designer and inventor of a skincare scanning and color

matching technology and software that allows a woman to match her skin color to

custom cosmetic products including foundations and concealers. The Sayuki

technology then formulates and produces the finished custom product for the

customer onsite in a matter of minutes.



RECENT L’OREAL ANNOUNCED ACQUISITIONS

Date Target Business Description Location

12/2014 ColoRight Mfg. hair coloring technology Israel

10/2014 Carol’s Daughter Mfg. hair & skincare products USA

09/2014 Sayuki Custom Cosmetics Mfg. cosmetics USA

09/2014 Niely Cosmeticos Mfg. haircare products Brazil

06/2014 NYX, Los Angeles Mfg. cosmetics USA

04/2014 Decléor S.A. & Carita Int’l Mfg. spa products France

04/2014 Magic Holdings Int’l. Mfg. skincare products China

09/2013 Cheryl’s Cosmeceuticals Mfg. hair & beauty products India

04/2013 Interconsumer Products Mfg. health & beauty products Kenya

01/2013 Lab. de Cosmeticos Vogue Mfg. toiletries Colombia

12/2012 Urban Decay Mfg. cosmetics USA

SAMPLE ACQUIRER PROFILE: L’OREAL (CONTINUED)

In September 2014, L’Oréal also announced the acquisition of Niely Cosmeticos

Group, a Brazil-based independent hair coloration and hair-care company whose

products are sold in supermarkets, pharmacies and perfume chains. The acquisition

further penetrates one of the biggest and fastest growing hair color geographic

markets in the world. Niely’s popularity with Brazil’s growing middle class

complements the products offered by L’Oreal’s consumer products division. L’Oréal,

which earns more than 8% of its revenue in Latin America is currently focusing on

new BRICS (Brazil, Russia, India, China, and South Africa) markets.

In June 2014, L’Oréal acquired NYX Cosmetics, which manufactures richly pigmented

products at affordable prices. NYX had created a niche between the prestige brands

sold in department stores and mass brands sold in drugstores. At the time of the

acquisition, NYX was generating over $100 million in sales, with much of its success

attributable to its marketing efforts in the digital space.

In September 2013 L’Oréal acquired Cheryl’s Cosmeceuticals, a brand that is

synonymous with superlative skin care treatments and products sold in salons. The

company offers a comprehensive range of innovative and unique treatments and

products to address the entire spectrum of skin and hair care concerns, utilizing

natural ingredients sourced from across the world. At the time of the acquisition,

Cheryl’s was generating approximately $3.5 million in revenue per year. Jean-

Christophe Letellier, Managing Director, L’Oréal India, said, “This is an attractive

opportunity for L’Oréal in India as it broadens the product offering of our

Professional Products Division in this country to also include skincare products and

services. It will further enhance our leadership position in the very dynamic

professional products market where we are present with our brands - L’Oréal

Professionnel, Matrix and Kerastase.’’

In December 2012 L’Oréal acquired Urban Decay Cosmetics from private equity

group Castanea Partners who had originally acquired the business in March 2009

from LVMH. Urban Decay is known for experimental shades and innovative

products; from intensely pigmented eye shadows to waterproof 24/7 glide-on eye

pencils, the company has one of the biggest shade ranges in the industry. The

products are popular among youthful, cutting-edge consumers who are attracted by

the fashion-forward image of the brand and its non-animal testing process. “Urban

Decay will beautifully complement L’Oréal Luxe’s portfolio of iconic brands. It is the

make-up specialist we needed to fully satisfy young women in search of playful colors

and inspiration in selective distribution, at an accessible price point. It is totally

additional to our existing propositions and as such it will contribute significantly to

the growth of the Division in the years to come,” said Nicolas Hieronimus, President

L’Oréal Luxe. At the time of the acquisition, Urban Decay was generating $130

million in sales.



SAMPLE ACQUIRER PROFILE: YELLOW WOOD PARTNERS

Yellow Wood Partners is a private equity group that is focused on finding strong

brands and companies in the consumer sector with an emphasis on consumer

packaged goods. Through its combined operating and investing experience the team

at Yellow Wood understands how to evaluate consumer businesses whose products

are sold through food, drug, mass, wholesale club and other “big box” retailers.

Yellow Wood only invests in businesses where the investment team believes it can

increase the value of the business through operating experience and direct

involvement. The senior team brings specific functional expertise in sales, marketing,

operations and finance, and is directly involved in all aspects of operations in order to

build strong, long-term relationships with the operating managers of its investments.

Its investment criteria includes the following:

• Focused exclusively on the packaged consumer products sector

• Strong brands with $10+ million in net sales

• Targets $10-$80 million in equity per investment

• Prefers majority ownership but will consider minority or 100% investments

• Operationally-focused with functional expertise in sales, marketing,

operations and finance

In February 2014 Yellow Wood acquired Dr. Teal’s Therapeutic Solutions from

Advanced Beauty, Inc. as an add-on acquisition to its Parfums de Coeur holding. Dr.

Teal’s is a leading brand across multiple personal care categories including specialty

bath, foot care and first aid and is sold in food, drug and mass channels. Dr. Teal’s is

the largest branded Epsom salt brand in the U.S. and had grown over 50% annually

over the past five years.

“Dr. Teal’s is a tremendous brand, offering the rare combination of real therapeutic

solutions with truly experiential bath and body products that are as delightful to use

as they are effective,” said James Stammer, CEO, Parfums de Coeur. “Dr. Teal’s is the

perfect complement to Parfums de Coeur’s leading fragrance and specialty bath

offerings. We look forward to continuing to grow the Dr. Teal’s brand with additional

marketing resources to build on the current success of the brand with our broader

customer base. This is the second add-on acquisition we have completed since

Yellow Wood purchased Parfums de Coeur, which continues to broaden our product

line, and it underscores the valuable role Yellow Wood plays in utilizing their deep

consumer products industry knowledge and connections.”

“Dr. Teal’s is an ideal add-on investment for Parfums de Coeur, as we believe that the

Parfums management team will be able to add even more firepower to an already

growing and well positioned brand,” said Dana Schmaltz of Yellow Wood. “The

acquisition fits our strategy of building Parfums into a broader personal care business

in many ways.”



SAMPLE ACQUIRER PROFILE: YELLOW WOOD PARTNERS (CONTINUED)

In January 2013 Yellow Wood acquired Ilex Consumer Products Group, a company

that owns brands in the OTC pharmaceutical sector as well as the health, bath and

beauty sector. The brands include the St. Joseph family of products, di-Gel digestive

aid, Calgon and The Healing Garden. The Ilex purchase fits well with Yellow Wood’s

strategy of investing in consumer brands where its operating focus can enhance the

growth and profitability of the brand with strong brand equity, while expanding Ilex’

distribution.

“It is exciting to have completed the acquisition of our second portfolio company.

This was an exclusive opportunity where we worked with the sellers to reach an

agreement that provided strong value for the initial work they had completed in re-

launching the St. Joseph and Calgon brands, while allowing Yellow Wood to invest at

a level we believe will provide attractive returns for our stakeholders,” said Dana

Schmaltz, Partner at Yellow Wood.

In September 2012 Yellow Wood partnered with the management team to acquire

Parfums de Coeur (“PDC”) to build a leading company in the personal care sector.

Founded in 1981, PDC is a leading mass-market fragrance marketer with an

exceptional portfolio of designer quality perfumes, fragrance body sprays and

colognes at affordable prices.

“We are pleased and excited to invest in PDC to support its continued domestic and

international growth,” said Peter Mann, a Yellow Wood Founding Partner and the

new Chairman of PDC. “The company’s experienced and committed management

team will be a huge asset as PDC continues to expand and innovate. We look

forward to working with them. PDC is precisely the kind of company that Yellow

Wood was created to help. Its strong brands, unique positioning, deep retail

distribution and dedication to quality are what we look for in successful and growing

consumer businesses. Moreover, our experienced Yellow Wood operating team will

enhance and complement PDC’s exceptional management talent.”

“The Company’s success has been led by its strong track record of developing unique

and innovative products, supported by differentiated marketing and strong retail

relationships. We are excited to partner with management to help accelerate their

growth vision into new opportunities, both domestically and overseas. Just as

important, we are eager to work with management to identify complementary add-

on brands or businesses to further expand the Company’s footprint,” said Dana

Schmaltz of Yellow Wood.

“We are extremely impressed with Peter and Dana and grateful for their support and

confidence. The strong operating resources Yellow Wood brings will further enable

us to grow our brand platform, while continuing to provide both our consumers and

retail partners with the quality and excellence they have come to expect from PDC,”

said James Stammer, CEO, Parfums de Coeur.



Enterprise Value (mm)

EV / LTM

Date Target Acquirer Target Business Description Revenue EBITDA

Dec-14 FoodState Inc. Pharmavite LLC Produces and markets natural whole-food supplements.

- - -

Dec-14 Natrol, Inc. Aurobindo Pharma USA Inc.

Manufactures and sells nutritional supplements in the United States.

$132.5 - -

Dec-14 Shape Medical Weight Loss Center, LLC

Life Time Fitness, Inc. (NYSE:LTM)

Owns and operates a non-surgical aesthetic and wellness clinic in Georgia.

- - -

Nov-14 Oasis Health Products, Inc.

Migranade, Inc. Manufactures homeopathic medicines, cosmetics, health and beauty aids, and nutritional supplements.

- - -

Nov-14 Dead Down Wind LLC

Arcus Hunting LLC Offers odor control products with a primary focus on skin care and health.

- - -

Nov-14 DSE Healthcare Solutions (6 brands)

Clarion Brands LLC Six over-the-counter drug brands including Lipo-Flavonoid, Certain Dri, Cystex, Albolene, Absorbine Jr.

- - -

Nov-14 Le Labo Inc. The Estée Lauder Companies (NYSE:EL)

Manufactures perfumes and fragrances. - - -

Oct-14 L Rodin LLC The Estée Lauder Companies (NYSE:EL)

Manufactures beauty care products. - - -

Oct-14 H&H Products Gentell, Inc. Manufactures skincare products under the H+H, Sterex Medical and Gentle Plus brand names.

- - -

Oct-14 C.B. Fleet Company, Inc.

Gryphon Investors; GoldPoint Partners LLC

Manufactures consumer health, beauty, and over the counter pharmaceutical products for consumers.

- - -

Oct-14 Nutri-Health Supplements, L.L.C.

Nature's Products, Inc. Manufactures and markets nutritional health supplements.

- - -

Oct-14 Global Protection Corp.

Karex Global Limited Manufactures and distributes sexual health products. $12.0 1.3x -

Oct-14 Dazzle Style Bar & Boutique

Shirin's Events LLC Provides hair wash and blow dry, manicure and pedicure, waxing, and makeup services.

- - -

Oct-14 Restart Your Life LLC Youngevity Essential Life Sciences

Operates as a dietary supplement company. $1.8 - -

Oct-14 BioLumix, Inc. Neogen Corp. (NasdaqGS:NEOG)

Produces a detection system for microbiological testing of nutraceutical, cosmetic, toiletry, and other products.

- - -

Oct-14 Milstein Batta Dermatology LLC

Advanced Dermatology & Cosmetic Surgery Inc.

Provides dermatology services in Pennsylvania. - - -

Sep-14 Dairy Association Company, Inc.

Vermont's Original LLC Offers Bag Balm, a solution for soothing and softening chapped and chafed skin, and promoting healing.

- - -

Sep-14 Touchless Care Concepts, LLC

Crawford Healthcare Holdings Limited

Manufactures skin care products for hospitals, nursing homes and home healthcare institutions.

- - -

Sep-14 CCA Industries Inc. (AMEX:CAW)

Capital Preservation Holdings LLC

Manufactures and distributes health and beauty aid products primarily in the United States and Canada.

$23.5 0.6x -

Sep-14 Fort Collins Skin Clinic, P.C.


Provides health consultations, special treatments and diagnostic care services.

- - -

Sep-14 Manzen, LLC Big Red, Inc. Doing business as Xyience, produces sports nutrition and supplements, and energy drinks.

- - -

Sep-14 INSIGHT Pharmaceuticals, LLC

Medtech Products, Inc. Manufactures non-prescription medications and personal care products for common ailments.

$750.0 - -



SELECT PERSONAL CARE PRODUCTS & SERVICES M&A TRANSACTIONS


EV / LTM


Aug-14 Humanetics Corp,, 7-Keto Dietary Brand

InterHealth Nutraceuticals, Inc.

A dietary ingredient that slows the impact of diet and age-related weight gain. - - -

Aug-14 Elements of Health Care, LLC

KEB Enterprises, LP Manufactures and markets health supplements. - - -

Aug-14 Twinlab Corporation

Employee Buyout Manufactures nutritional supplements including weight management and energy products.

- - -

Aug-14 Vitacost.com, Inc. The Kroger Co. (NYSE:KR)

Operates as an online retailer of health and wellness products primarily in North America.

$281.2 0.6x -

Aug-14 Chastain Wellness Studio, LLC

Beauty by Alethea Inc. Provides weight loss, body contouring, facial esthetics and massage services.

- - -

Aug-14 Integrated Electric Systems Corp.

KollagenX Corp. (OTCPK:KGNX)

Manufactures and sells skin care products in the United States and internationally.

- - -

Aug-14 Quanta Aesthetic Lasers USA, LLC

EL.EN. Società per Azioni (BIT:ELN)

Develops laser systems for use in aesthetic and other applications worldwide.

$5.7 0.8x -

Jul-14 Virga Botanicals, LLC 400 Beverly, Inc. Manufactures skincare and body care products. - - -

Jul-14 METAUGUS, INC. Axiom Laboratories, LLC

A contract manufacturer of dietary and nutritional supplements, vitamins and nutraceuticals.

- - -

Jul-14 ME SPA me! Bath Owns and operates a chain of spas. - - -

Jul-14 PreCision Dermatology, Inc.

Valeant Pharmaceuticals Intl. (TSX:VRX)

Develops and manufactures dermatology products and therapeutic and cosmetic skincare solutions.

$500.0 - -

Jul-14 Healthy Directions, LLC Helen of Troy Limited (NasdaqGS:HELE)

Operates as a direct retailer of doctor-formulated nutritional supplements and skincare products.

$195.0 1.3x 8.0x

Jun-14 FDC Vitamins, LLC dba Nutri-Force Nutrition

VS Hercules LLC Produces and distributes vitamins, minerals, herbs and food supplements, including for hair, skin and nails.

$85.0 - -

Jun-14 Kush Inc. Cannabis Sativa, Inc. (OTCBB:CBDS)

Manufactures a line of natural hemp-based skin care products.

$13.2 - -

Jun-14 Coterie Inc. Poshly Inc. Operates an online site for beauty products. - - -

Jun-14 Triad Group, Inc. Medline Industries, Inc. Manufactures disposable and consumable products including personal care products.

$7.1 - -

Jun-14 N.V. Perricone M.D., Ltd.

Lion Capital LLP Provides anti-aging products, anti-inflammatory diets and skin care supplements.

- - -

May-14 RAR Beauty, LLC Joey New York, Inc. (OTCPK:JOEY)

Wholesales and retails natural skin care and beauty products in the United States.

$3.6 - -

Apr-14 DreamTime, Inc. Evriholder Products, LLC

Designs heat therapy, cold therapy and aromatherapy solutions.

- - -

Apr-14 Arctic Beauty Supply Inc.

Beauty Systems Group LLC

Distributes beauty and cosmetics products to the professional market.

- - -

Apr-14 Pharma-Pac, LLC Emilia Cosmetics Ltd. Manufactures and packages pharmaceutical and nutritional, including skincare, products.

- - -

Apr-14 Fontarome Chemical, Inc.

SFM, LLC Produces flavors, fragrances and pharmaceutical ingredients.

$2.6 - -



SELECT PERSONAL CARE PRODUCTS & SERVICES M&A TRANSACTIONS


EV / LTM


Apr-14 Alvogen, Inc. Pamplona Capital Management LLP

Manufactures generic pharmaceuticals and OTCs, including cosmetics and personal care products.

- - -

Apr-14 Cedarburg Pharmaceuticals, Inc.

Albany Molecular Research Inc.

Contract manufacturer of pharmaceutical, personal care and dietary supplement ingredients.

$41.0 - -

Apr-14 CornerStone Research & Development

F.H.G. Corporation Manufactures dietary supplements. - - -

Apr-14 P&G, DDF Skincare Business

SA Designer Parfums Limited

Manufactures skin care products, including anti-aging, acne and hyper pigmentation products.

- - -

Apr-14 NuStar Nutritional Manufacturing, LLC

Nutroganics, Inc. (OTCPK:NUTT)

Provides nutritional supplement contract manufacturing services.

- - -

Apr-14 Tarte, Inc. KOSE Corp. (TSE:4922)

Manufactures cosmetics. $135.0 - -

Apr-14 Northwest Cosmetic Laboratories, LLC

Clearview Capital, LLC Contract research, development and manufacture of cosmeceutical & personal care products.

- - -

Mar-14 Oscar de la Renta, Fragrance Division

Inter Parfums USA, LLC Produces and distributes the Oscar de la Renta fragrance collections.

- - -

Mar-14 Arminak & Associates, Inc.

Rieke Corporation Manufactures packaging solutions for cosmetics, personal care, skin & body and hair care markets.

$177.0 - -

Mar-14 CellCeuticals Skin Care, Inc.

Histogen Aesthetics, LLC

Develops skin treatment and cleanser products. - - -

Mar-14 The Bobby Company LLC

Denman International Ltd

Manufactures products for the professional beauty market worldwide.

- - -

Mar-14 PeroxyChem LLC One Equity Partners LLC

Manufactures hydrogen peroxide, peracetic acid and other solutions for cosmetics and other markets.

$200.0 - -

Feb-14 The DeWolf Companies, Inc.

KODA Distribution Group, LLC

Distributes specialty chemicals to personal care, color cosmetics and other markets.

- - -

Feb-14 Miramar Dermatology Adv. Dermatology & Cosmetic Surgery Inc.

Provides dermatology services. - - -

Feb-14 JA Cosmetics Corp. TPG Growth Doing business as e.l.f. Cosmetics, provides cosmetic and makeup products.

- - -

Feb-14 Vogue International, Inc.

The Carlyle Group LP (NasdaqGS:CG)

Manufactures and distributes salon-heritage hair care and other personal care products.

$798.0 - -

Feb-14 Advanced Beauty Systems; Dr. Teals

Parfums de Coeur, Ltd. Manufactures therapeutic and personal care products, including specialty bath, foot care and first aid.

- - -

Feb-14 East Shore Distributors, Inc.

Foreswood Industrial Corporation

Distributes consumer products, including anti-aging creams and hand moisturizers.

- - -

Jan-14 Nucelis Inc. Cibus Global, Ltd. Provides bio-products for use in cosmetics and other products.

- - -

Jan-14 Westside Dermatology PLLC


Provides medical and cosmetic dermatology services. - - -

Jan-14 Bon Vital Inc. Cramer Products, Inc. Designs, manufactures and markets products for the wellness industry.

- - -

Jan-14 Biozone Pharmaceuticals

Muscle Pharm Corp. (OTCPK:MSLP)

Manufactures OTC drug, cosmetic and beauty products on behalf of third parties.

$17.4 1.4x -



SELECT PERSONAL CARE PRODUCTS & SERVICES M&A TRANSACTIONS (CONTINUED)

LTM = last twelve months; EV = enterprise value;

Sources: Capstone Partners LLC research; Capital IQ; public filings and press releases

has been acquired by


has recapitalized with




ANAPHORA, LLC

has secured financing from


Pierre’s School of Cosmetology



CAPSTONE PARTNERS: COMPLETED PERSONAL CARE PRODUCTS & SERVICES TRANSACTIONS

CAPSTONE PARTNERS: OTHER CONSUMER PRODUCTS & SERVICES TRANSACTIONS

has recapitalized with has been

acquired by has been

acquired by

a portfolio company of




Senior Members of

Doc’s Drugs, Ltd.

strategic joint venture


a portfolio company of

David Bench, Managing Director [email protected] • (949) 460-6431

David is a Managing Director in charge of the Western Region, based out of Los

Angeles. Prior to Capstone, David managed the Western region for Morgan Stanley

Smith Barney’s Capital Strategies Group and its predecessor, Citi Capital Strategies.

David has focused on middle market investment banking for nearly 30 years and has

been the lead banker in over 250 M&A transactions involving both domestic and

foreign corporate buyers, as well as leveraged recaps with private equity sponsors.

David’s achievements in investment banking have gained national recognition by The

M&A Advisor: one of his transactions was awarded the “Private Equity Deal of the

Year,” while another was recognized as the “Energy Deal of the Year.” Mr. Bench has

also been awarded “Middle Market Financing Professional of the Year,” an award

recognizing M&A’s most accomplished professionals. Mr. Bench holds a BS and an

MBA in Finance from Brigham Young University. He is a Series 7 and 63 Registered

Securities Representative and a Series 24 Registered Securities Principal.

Tracy Patch, Vice President [email protected] • (949) 460-6432

Tracy is a Vice President in the Los Angeles office, supporting the management of the

Western Region. Prior to Capstone, Tracy worked as a senior banking professional in

Morgan Stanley Smith Barney’s Capital Strategies Group and its predecessor, Citi

Capital Strategies. She possesses over ten years of experience in middle market

investment banking, working on both domestic and cross-border transactions. Her

previous finance experience includes working in the hedge fund industry with

Collins/Bay Island Securities LLC and Talisman Capital Partners. Prior to that, Mrs.

Patch worked with institutional fixed income sales at Vining Sparks IBG, LP and

Robert Thomas Securities, Inc. She also was a manager at The Disney Company. Mrs.

Patch holds an MBA from Pepperdine University and a BS in Finance from Miami

University of Ohio. She is a Series 7 and 63 Registered Securities Representative.

Daniel Schultz, Director of Business Development

[email protected] • (617) 619-3368

Dan oversees Capstone’s national business development and industry coverage

activities, working closely with current and prospective clients of the firm on matters

related to corporate sales, recapitalizations, mergers & acquisitions and growth

financings. In his role, Dan is able to deliver specific market intelligence to clients

regarding M&A, financing, strategic, industry and competitive trends. Prior to

spearheading the firm’s business development and market initiatives, he was a Vice

President in Capstone’s M&A group, managing numerous successful transactions

across a variety of industries. Dan also gained hands-on transaction experience as an

investment banker at Headwaters MB. He started his career with Ernst & Young’s

National Professional AABS practice and later worked in Assurance and Advisory

Business Services in the Denver office. Dan received a BE in Biomedical Engineering

with a Business Minor from Vanderbilt University. He earned an MBA and a Master

of Accountancy from the Daniels College of Business at the University of Denver.



THE PERSONAL CARE PRODUCTS & SERVICES TEAM

ABOUT CAPSTONE PARTNERS

Capstone Partners LLC is a premier investment banking firm dedicated to serving

the corporate finance needs of middle market business owners, investors and

creditors. The firm provides corporate sale & divestiture, merger & acquisition,

private placement, corporate restructuring, valuation and financial advisory

services. Capstone maintains various industry specialties including one in the

Personal Care sector. The firm also has a merchant banking capability to actively

co-invest in transactions. Headquartered in Boston, Capstone has offices in

Chicago, London, Los Angeles, Philadelphia, San Diego, Silicon Valley and Tampa.

© 2015 Capstone Partners LLC. All rights reserved.

World Class Wall Street Expertise. Built for the Middle Market.

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BOSTON

176 Federal Street

3rd Floor

Boston, MA 02110

(617) 619-3300

CHICAGO

200 South Wacker Drive

Suite 3100

Chicago, IL 60606

(312) 674-4531

LONDON

42 Brook Street

London W1K 5DB

United Kingdom

+44 (0) 203 427 5068

LOS ANGELES

23046 Avenida de la Carlota

Suite 600

Laguna Hills, CA 92653

(949) 460-6431

PHILADELPHA

1515 Market Street

12th Floor

Philadelphia, PA 19102

(215) 854-4063

SAN DIEGO

12707 High Bluff Drive

Suite 200

San Diego, CA 92130

(858) 926-5950

SILICON VALLEY

228 Hamilton Avenue

3rd Floor

Palo Alto, CA 94301

(650) 319-7370

TAMPA

1550 W Cleveland Street

Suite 700

Tampa, FL 33679

(813) 251-7285

For more information

about our expertise,

please visit

www.capstonellc.com

Documents

PERSONAL CARE PRODUCTS & SERVICES Q1 2015 Personal Care...boston chicago london los angeles philadelphia san diego silicon valley tampa personal care products & services q1 2015 contacts