TA Associates’ MAV Beauty Brands prices $241.7M IPO at $14 per share

MAV Beauty Brands Inc., a portfolio company of TA Associates Management, L.P., has priced its proposed initial public offering (IPO) and concurrent secondary offering by Bock Capital EU Luxembourg MAC S.A.R.L., an entity controlled by TA Associates, MB (2020) Holdings Inc., an entity controlled by Marc Anthony Venere, and Redmond Holdings 2, Inc., an entity controlled by Renpure’s founding Redmond family.

MAV Beauty Brands will issue 9,000,000 shares from treasury and 8,267,000 shares, by way of secondary offering, at $14.00 per share for gross proceeds of $126 million and $115.738 million to the company and the selling shareholders respectively.

Specifically, TA Associates, Marc Anthony Venere and the Remond family, will indirectly sell 4,480,688 and 2,608,628, 1,177,684 for gross proceeds of approximately $62.73 million, $36.52 million, $16.49 million respectively.

TA Associates formed MAV Beauty Brands Inc., formerly named MAC Topco Holdings Inc., through Marc Anthony Cosmetics Ltd. then acquired substantially all of the assets of Marc Anthony Cosmetics Inc. on September 30, 2016 for US $174.7 million.

The selling shareholders have granted the underwriters an over-allotment option for additional 2,590,050 shares at the offering price.

Upon completion of the offering, MAV Beauty Brands will have 41,443,191 common shares issued and outstanding on a fully-diluted basis, valuing the company at $580 million at the offering price.

Upon closing of the offering, TA Associates will, directly or indirectly, own or control 12,713,665 shares or a 31.2% equity interest, if the over-allotment option is exercised in full, 11,309,867 shares for a 27.8% equity interest. Marc Anthony will own 7,401,817 shares (18.2% equity interest), if the over-allotment option is exercised in full, 6,584,533 shares (16.2%), The Redmond family will own 3,341,602 shares (8.2%) or 2,972,634 (7.3%) if the over-allotment option is exercised in full.

The Toronto Stock Exchange (TSX) has conditionally approved the listing of MAV Beauty Brands shares under the symbol “MAV”. The offering is expected to close on July 10, 2018.

CIBC World Markets Inc., RBC Dominion Securities Inc., Jefferies Securities, Inc. are the lead underwriters for the offering. Stikeman Elliott LLP and Osler, Hoskin & Harcourt LLP act as legal counsel to MAV and the underwriters respectively.

Founded in 1995 by Marc Anthony Venere, Marc Anthony Cosmetics is a high-growth global personal care company dedicated to providing consumers with premium quality, authentic and differentiated products. Its platform consists of complementary and rapidly growing personal care brands: Marc Anthony True Professional, Renpure and Cake Beauty.

photo credit: Marc Anthony Cosmetics

Ted Liu

Ted Liu, M.Sc. (Mining, Queen's), MBA (Finance, Toronto), is the Editor of Private Capital Journal, CanadaMetals.ca, TechWire.ca, and the former Editor of Canadian Private Equity. Ted has been passionately tracking Canadian private capital industry since 1992, having most recently served as Research Director for The Canadian Venture Capital and Private Equity Association (CVCA).

Ted is the architect of CVCA infobase, and is the architect of CPE Media's Financings.ca, Canada's most sophisticated and advanced all private capital and public market financing database.