The transaction is Gryphon's second investment in the beauty sector after the firm acquired indie color cosmetics brand Milani Cosmetics in June 2018. Terms of the deal were not disclosed.
Gryphon Executive Advisors Steve LaMonte and Michelle Taylor will serve as advisors to RoC, with Mr. Lamonte acting as Executive Chairman. In addition to Mr. LaMonte, Ms. Taylor, along with select individuals from Gryphon, will join the Board of Directors. As part of the carve-out transaction, Mr. LaMonte and Ms. Taylor will be focused on recruiting the go-forward senior management team to lead RoC under Gryphon's ownership.
"RoC has a rich history of skincare solutions innovation stemming from its French pharmacy roots. As the first brand to stabilize Retinol, which is one of the top U.S. dermatologist-recommended cosmetic ingredients for improving the appearance of aging skin, RoC continues to be one of the largest brands solely focused on anti-aging skincare products,” says Matt Farron, Principal at Gryphon, in a news release. "By leveraging the brand's French pharmacy heritage and track record of clinically proven innovation, we see numerous opportunities to expand RoC's product offering to establish it as a brand with complete skincare solutions leading to increased market share."
Headquartered in Manhattan, RoC created in 1957 by French pharmacist Dr. Jean-Charles Lissarrague and has a 60+ year history of revolutionizing the skincare industry. RoC products are primarily manufactured in France.
"We are excited to build on RoC's past to connect with today's customers. We see opportunities to expand the portfolio beyond Retinol and anti-aging, improve product support in international markets, strengthen links with the dermatology community, and drive customers into stores with creative, technology-driven product launches and marketing efforts,” adds LaMonte. “We also plan to boost RoC's engagement with all age groups. In addition to RoC's core customer demographic of women aged 40+, millennials are showing great interest in the category and have responded positively to product trials."
"Gryphon has a long-standing track record of growing consumer product brands and I'm excited to partner with them for a second investment in the beauty sector to capitalize on one of the most iconic skincare brands in the market today,” shares Taylor. “I believe the financial and operational resources we bring will ensure RoC's ability to thrive as a stand-alone company, delivering a world-class brand to new and existing customers."
Sawaya Partners, LLC was financial advisor to Johnson & Johnson, and Covington & Burling was legal advisor to Johnson & Johnson. Luc-Henry Rousselle at LSH Partners was Gryphon Investors' financial advisor and Kirkland & Ellis acted as Gryphon's legal advisor.