Julep Cashes in on Customization Trend
Julep is set to be bought out by Glansaol, a prestige makeup conglomerate put together by Warburg Pincus and cosmetics industry veteran Alan Ennis, the former CEO of Revlon.
At MMG we knew instinctively that Julep, the cosmetics brand that tapped into consumers’ unceasing desire for customization, was on to something special in the crowded world of online retailing—that’s why we picked it for our November 2014 cover story.
Even so, it’s always affirming when a new consumer concept grabs the attention of the millennial women whose presence dominates ACG Global’s office, and that was certainly the case from the time the first samples of Julep’s alluring nail polish colors arrived in their sleek-styled vials. Even this baby boomer found the idea of having nontoxic cosmetics custom-selected for personal style preferences and conveniently delivered monthly to be compelling.
Private equity agrees. Julep is set to be bought out by Glansaol, a prestige makeup conglomerate put together by Warburg Pincus and cosmetics industry veteran Alan Ennis, the former CEO of Revlon. It is one of three upscale brands selected for the Glansaol portfolio: the other two are Laura Geller, a maker of high-end face powders, and Clark’s Botanicals, which offers skin care.
“I’m thrilled to be joining forces with Glansaol. This new venture will enable us to continue on our path of rapid growth and social innovation. There is really no other vehicle in beauty that exists today like Glansaol, and I am confident that through the collaboration and with their deep beauty and operational knowledge, Julep will be able to realize its potential.” Jane Park, Julep Founder
Julep goes a step beyond its rivals in the curated consumption space, relying on crowdsourced input from a select group of customers to develop some 300-plus new products in-house each year. Its team chooses the combination to assemble for monthly delivery by combing through survey data from subscribers about their style and color preferences so packages match their profiles.
Jane Park, a Princeton and Yale-educated daughter of Korean immigrants, launched Julep in 2007 with her own funds and money from angel investors. For now, Park plans to stay on at the company she built.
“I’m thrilled to be joining forces with Glansaol. This new venture will enable us to continue on our path of rapid growth and social innovation. There is really no other vehicle in beauty that exists today like Glansaol, and I am confident that through the collaboration and with their deep beauty and operational knowledge, Julep will be able to realize its potential,” Park said in a statement announcing the buyout on Dec. 19.
Terms of the transaction, which is expected to close shortly, were not disclosed. At the time of our story, two years ago, Julep was experiencing year-over-year revenue growth of 400 percent and had expectations to continue on that pace.
It will be interesting to watch what that growth looks like going forward with the added muscle of significant private capital behind it.
Deborah L. Cohen is editor-in-chief of Middle Market Growth magazine.
