The Brazilian company Cless Cosméticos invites as investment partners One Equity Partners and JPMorgan Chase & Co., one of the largest and strongest financial institutions in the world, while maintaining control and management under the leadership of its founder
Cless Cosméticos has joined the list of companies in the investment portfolio of One Equity Partners (OEP), the exclusive private investment arm of JPMorgan Chase & Co. (JPMC). The investment is still subject to regulatory approval from the Conselho Administrativo de Defesa Econômico (CADE). According to Brad Coppens, a partner of OEP based in Brazil, the choice of Cless as a way to enter the large Brazilian cosmetics industry was made because Cless was seen as "the ideal platform to enter the industry as well as being one of the healthiest and most professional domestic companies that we have seen in Brazil."
Fundamental to OEP’s decision to take a 30% ownership stake in the Brazilian company were the company’s ambitious and sound long-term plans of reaching annual turnover of R$350 million by 2016. Another relevant factor is the strategy adopted by Cless – which operates in niches of the beauty market – of always adding value in the relationship with its stakeholders, thereby maintaining relevance and achieving above-market growth.
Consistent with OEP’s investment philosophy and the company’s high level of professionalism, the investment is being made in partnership with the founder and current CEO, Luiz Piccoli, with whom the management and control of the company will remain. "Rarely have we had the opportunity to invest in a company with such a high level of organization, strategy and transparency. Our intention is to form a long-term partnership and help accelerate the company’s growth," said Carlo Padovano, partner of OEP.
The decision to invest in Cless makes clear one of OEP’s main values: to identify companies with a unique value proposition and not simply transactions based on financial returns, and to target companies that can add value through acquisitions and scale efficiencies.
Luiz Piccoli, CEO and founder of Cless Cosméticos, began his career in multinational and local Brazilian companies, and 9 years ago, built a national company with solid foundations, based on a vision of a process-oriented company with highly-professional management. Completing 10 years in September 2014, Cless has achieved annual growth rates exceeding 20%, and forecasts sales to reach R$350 million in 2016. Cless operates with a offering of differentiated and quality products, managing and making large investments behind some of the largest brands in the Brazilian cosmetics industry, including Charming, Lightner, Bigen, Care Liss and Essenza. Cless is the leader in the categories in which it operates and is present in more than 70,000 retail outlets.
One Equity Partners:
OEP manages approximately $7 billion in investments and committed capital for JPMC. OEP makes investments behind compelling business ideas and strong management teams and invests with business purpose. This means partnering with management in transactions initiating strategic and operational business changes to create long-term value. OEP looks for companies in growing or changing industries with management teams who share our creative approach to commerce. OEP believes that its capital is best employed to help these managers change their businesses and achieve their goals. Since 2001, OEP has invested in over seventy companies in a variety of industries, including chemicals, healthcare, consumer products, technology, travel and manufacturing. OEP's investment professionals are located across North America, South America, Europe and Asia.