Equicapita closes acquisition of Caryl Baker Visage

Equicapita Income Trust and Equicapita Investment Corp. have acquired Visage Cosmetics Limited (Caryl Baker Visage) from Nathan Tam and Justin Dumitrescu. Financial terms were not disclosed.

Visage Cosmetics is the leading franchisor of retail beauty and cosmetics services and products, with 31 locations throughout Ontario and one in Alberta.

Founded in 1969 by Caryl Baker, Caryl Baker Visage was acquired by Tam and Dumitrescu in 2013.

Visage Cosmetics is Equicapita’s thirteenth portfolio company acquisition, its second beauty product and service investment, third investment completed by Equicapita’s Eastern Canadian office since opening in the mid-2018 and fourth acquisition of a franchise business.

Equicapita’s Managing Director, Eastern Canada, Adam Jezewski led Equicapita’s deal team that also includes Kerri Furlong and Matt Barr.

Norton Rose Fulbright Canada LLP and MNP Corporate Finance Inc. acted as legal and financial advisors respectively in connection with the acquisition.

photo credit: Caryl Baker Visage

News Release

Equicapita Announces Acquisition of Visage Cosmetics Limited

TORONTO, ONTARIO (January 8, 2020) – Equicapita Income Trust and Equicapita Investment Corp. (collectively, “Equicapita”) are pleased to announce the completion of the acquisition of Visage Cosmetics Limited (“Visage Cosmetics”) by a wholly-owned subsidiary of Equicapita (the “Acquisition”).

Founded in 1969, Visage Cosmetics is the leading franchisor of retail beauty and cosmetics services and products in Ontario. With 31 locations throughout Ontario and one in Alberta, Visage Cosmetics has established enduring franchisee relationships and a reputation for outstanding guest service.

The opportunity to invest in a successful beauty product and service business with a diverse and growing base of recurring royalty revenue adds industry diversification to Equicapita’s investment portfolio and continues our growth into Eastern Canada. “Since acquiring Visage Cosmetics in 2013, Nathan Tam and Justin Dumitrescu, Visage Cosmetic’s owner-operators, and their senior management team have consistently grown system revenue and strengthened the business’ operating processes, brand and presence in the communities that Visage Cosmetics serves,” said Equicapita’s Managing Director, Eastern Canada, Adam Jezewski. “Equicapita is targeting investment opportunities in the beauty product and services market due to its consistent demand profile in all economic environments and favorable long-term growth prospects. In addition to meeting these criteria, Visage Cosmetics has an experienced and dedicated senior management team, led by Nathan Tam and many successful, long-term franchisees. We are fortunate and excited to have the opportunity to partner with Nathan and the Visage Cosmetics team and franchisees to continue strengthening and growing the business and brand going forward.”

Equicapita and our new Visage Cosmetics colleagues will continue to build the legacy that the Visage Cosmetics franchisees have worked hard to build. “Since our initial meeting with the current owners, it has been clear that they care about the success of their franchisees and satisfaction of Visage Cosmetics’ end customers. We look forward to supporting the ongoing growth and success of the business,” said Michael Cook, co-founder and Director of Equicapita.

Consistent with Equicapita’s investment mandate of assembling a diversified portfolio of long-established Canadian businesses, Visage Cosmetics has 50 years of operating history serving communities across Ontario. Visage Cosmetics’ track record of generating consistent, profitable growth through excellent customer and supplier relationships, represent cornerstones of Equicapita’s investment strategy.

Visage Cosmetics is Equicapita’s thirteenth portfolio company acquisition, its second beauty product and service investment, third investment completed by Equicapita’s Eastern Canadian office since opening in mid-2018 and fourth acquisition of a franchise business. Equicapita’s deal team was led by Adam Jezewski, with key contributions from Kerri Furlong and Matt Barr. Equicapita retained Norton Rose Fulbright Canada LLP as legal advisors and MNP Corporate Finance Inc. as financial diligence advisors in connection with the Acquisition.

About Equicapita
Founded in 2013, Equicapita is a private company buyout fund with offices in Calgary, Alberta and Burlington, Ontario with over $300 million in AUM focused on acquiring private, Canadian businesses with enterprise values ranging from $5 million to $50+ million.

For more information please contact: Adam Jezewski, Partner & Managing Director, Eastern Canada Tel: 905.336.8951 E-mail: adam@equicapita.com