Everstone exits Canada's Faces to Sequoia

Sequoia will acquire the Canadian business of Faces, its international subsidiaries and the company’s cosmetics brands. Financial details were not disclosed, though the Economic Times estimated the size of the deal at $40 million.

While Everstone managing partner Rajeev Shukla will retain his personal stake in Faces following the takeover, Everstone itself will fully exit its holding. The company’s existing management will remain in place and continue implementing their growth strategy. Faces plans to grow sales from INR1 billion ($15.6 million) in fiscal year 2017 to INR 5 billion over the next five years.

According to AVCJ Research, Everstone acquired Faces, at the time near bankruptcy, in 2007 for $10.3 million, prior to the GP’s spinout from Future Group. Foreign buyouts are unusual for the firm, but Everstone saw an opportunity to relaunch the company in India to take advantage of expected growth in the country’s consumer sector.

Faces now manufactures more than 350 cosmetics and skincare products for the Indian market, with a presence in 2,900 stores across 80 cities in the country. Its products are also available on several e-commerce outlets.

The purchase represents the first buyout deal for Sequoia India, which closed its fifth fund last year at $920 million. Sequoia targets the consumer, technology and healthcare sectors, typically committing early stage and growth capital and also providing mezzanine and pre-IPO investments. The firm’s India consumer portfolio includes energy drink maker Hector Beverages and juice maker Raw Pressery.

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• Topics
• South Asia
• Consumer
• Buyouts
• Trade sale
• India
• Sequoia Capital
• Everstone Capital
• Exit