FOR IMMEDIATE RELEASE
Berkshire Partners and JH Partners Recapitalize MD Beauty
San Francisco, CA - October 10, 2005 - Private equity firms Berkshire Partners LLC and JH Partners LLC today announced the $408 million recapitalization of MD Beauty, Inc., the market leader in mineral-based cosmetics.
"We are pleased to be able to use this recapitalization transaction to return value to investors so they may share in the company's successes to date," said Ross M. Jones, Managing Director at Berkshire Partners.
"MD Beauty is an exceptional company," said John Hansen, President of JH Partners. "We remain fully committed partners, working closely with management to continue the success MD Beauty has experienced since we first invested 15 years ago."
Today's transaction is MD Beauty's third recapitalization in the last two years. In June 2004, Berkshire Partners and JH Partners together led a recapitalization in which both firms made substantial equity investments. In February 2005 Berkshire Partners and JH Partners recapitalized the company, returning 100% of the equity capital invested in the June transaction. As part of today's recapitalization, both firms returned to their investors an additional approximately 145% of the equity capital invested in the June transaction, bringing the total capital returned to approximately 245% of capital invested.
The senior debt financing for the recapitalization was led by BNP Paribas. The transaction closed on October 7.
About MD Beauty
Headquartered in San Francisco, California, MD Beauty is one of the fastest growing personal care companies in the U.S. The company is a marketer of branded cosmetics and skin care products focused primarily within the health and beauty and the cosmeceutical markets. MD Beauty markets products under a portfolio that consists of recognized brands such as Bare Escentuals, including its i.d. bareMinerals line, and md formulations. The Company markets its brands through direct response television (both long form infomercials and QVC), company owned boutiques, premium wholesale accounts, such as Ulta and Sephora, and spas and salons. Additional information regarding MD Beauty may be found at www.bareescentuals.com.
About Berkshire Partners
Berkshire Partners has invested in mid-sized private companies for the past twenty years through six investment funds with aggregate capital commitments of approximately $3.5 billion. The firm's investment strategy is to seek companies that have strong growth prospects and to partner with talented management teams who are interested in being owners of the companies they operate. Berkshire has developed specific industry experience in several areas including consumer products, industrial manufacturing, transportation, communications, business services, and retailing and related services. Berkshire has been an investor in over 80 operating companies with more than $13.0 billion of acquisition value and combined revenues in excess of $17.0 billion. Additional information may be found at www.berkshirepartners.com.
About JH Partners LLC
JH Partners is a San Francisco-based private equity firm focused on investments in growth-oriented middle market consumer products and services companies. The firm distinguishes itself among private equity firms in that each of its principals has senior-level operating experience building middle-market consumer related businesses. JH Partners has been instrumental in aiding the growth of powerful consumer brands, including Peet's Coffee & Tea, Bare Escentuals, Performance Bicycle Shop, Bell Helmets, and Design Within Reach, among others. In 2004, the company raised $200 million in its first institutional fund. Additional information may be found at www.jhpartners.com.
Contact:
Jeanine NeumannPat Collins
JH Partners LLC
415-364-0318
Dan Hilley
Abernathy MacGregor Group
213-630-6550
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