Dive Brief:
- The assets of beauty brand Pat McGrath Labs are up for auction. Hilco Global’s IP Practice is seeking offers, the financial services firm announced Dec. 22.
- The firm is soliciting bids until Jan. 26 and will sell the brand’s assets on an as-is basis. It will host an auction via Zoom, with an option to appear in person, on Jan. 27.
- The financial firm said it had not independently verified Pat McGrath Labs’ financial performance and operations and encouraged bidders to conduct their own due diligence.
Dive Insight:
As Pat McGrath Labs seeks a buyer, Hilco Global stressed in its release that an acquirer will gain access to a beauty brand known for its high-performance formulas, pigmented eyeshadows and “iconic” lip products.
“Continuing to build the brand will require a mix of maximizing the core and continuing to lead and set trends with product innovation and intuition,” Hilco Global’s Richelle Kalnit said in a statement. “Strong fundamentals not only provide a stable foundation of recurring revenue and targeted innovation but also a solid base for future expansion.”
Founded in 2015 by namesake legendary makeup artist Pat McGrath, the brand has since collaborated with a lengthy list of marquee brands, including Prada, Valentino, Versace and Comme des Garçons, among other luxury brands.
In 2018, Eurazeo Brands invested $60 million into the cosmetics company, bringing the total outside funding raised at that time to $88 million. At that point, Pat McGrath Labs wanted to grow its U.S. distribution and meet rising global demand. In 2021, Eurazeo exited the beauty brand.
Building on her decades-long relationship with Louis Vuitton, Pat McGrath joined the luxury brand in August as creative director to launch its debut cosmetics line, La Beauté Louis Vuitton, per a company announcement.
