Skin-care brand Elemis taps Jefferies for sale 

British luxury skin-care brand Elemis has tapped investment bank Jefferies Group to explore a sale of the business, sources familiar with the situation tell CNBC.

Elemis has roughly $50 million in earnings before interest, taxes, depreciation along with amortization, the sources said, asking not to be named because the information is actually confidential.

Its private equity owner L Catterton told CNBC This particular does not comment on rumors or speculation. Jefferies also declined to comment.

The upscale brand is actually the latest skin-care company to put itself up for sale, taking advantage of increased interest along with growing sales inside the industry. Millennials are right now aging along with concerned about wrinkles, shifting their focus away via coloration cosmetics toward skin care. This particular trend fits having a deeper interest in all forms of wellness, whether This particular be fitness, diet or beauty.

“One of the drivers of the growth in coloration cosmetics was young millennials teaching their mothers about coloration cosmetics — mothers didn’t grow up inside the age of YouTube, strobing along with contouring,” said Andrew Shore, a managing director at investment bank Moelis.

“right now, early adopters to coloration cosmetics are coming of age along with their mothers are teaching them about skincare.”

The $5.6 billion skin-care industry last year grew 9 percent, according to market researcher The NPD Group, while sales of makeup grew 6 percent.

Elemis distinguishes itself via its niche competitors both by its comparatively larger size along with unique sales distribution. The cult favorite sells in airports along with on cruises, where This particular hopes to create brand-new customers as well as serve existing ones.

Nontraditional ways of selling products have become increasingly important as department stores along with drugstores lose foot traffic, generating spontaneous purchases harder to come by. Leading beauty care retailer Sephora, meantime, is actually ceding more space to its private label products along with brands which are owned by its parent, LVMH, such as Rihanna’s Fenty Beauty cosmetics.

Elemis is actually also available in more than 1,0 spas, salons along with stores along with on websites, as well as on shopping network QVC. This particular recently began selling in Ulta Beauty inside the U.S., which This particular will use as its launching pad into the region.

Its products, including Superfood Facial Oil along with Pro-Collagen Marine Cream, claim to combine laboratory-made ingredients with plant-based botanicals.

Elemis was acquired by L Catterton’s predecessor, Catterton, in 2015, when the private equity firm acquired Elemis’ parent, Steiner Leisure, for $925 million, including debt.

A sale might be the latest in a string of deal activity inside the industry. Colgate-Palmolive acquired professional skin-care brands PCA Skin along with EltaMD last year, along with Procter & Gamble acquired prestige skin-care label First Aid Beauty earlier This particular year.

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