West Lane invests in Simply Organic Beauty
16 Sep 2021 --- Private investment group West Lane Capital Partners recognized and valued Simply Organic Beauty’s focus on high quality products that sat in the clean beauty market, prompting the decision to invest in the brand. As Nick Sternberg, West Lane’s Managing Partner, says: “We were drawn to Simply Organic due to its strong reputation as a trusted resource for curating the cleanest and highest quality hair care products in the US.”
The organic beauty brand’s prioritization of innovation was also integral to West Lane’s decision to invest. “We continue to see the market demand for cleaner products and we believe Simply Organic’s track record of continuous innovation will enable the company to continue to differentiate itself in the market,” adds Sternberg.
West Lane’s Senior Associate Michael Wentz notes: “We are also very impressed with the strong relationships and community the company has built with professional stylists and users of its products.”
California-based West Lane, in partnership with J.P. Morgan Asset Management's Private Equity Group, acquired a majority interest in Simply Organic Beauty. Based in Florida, Simply Organic is a leading developer and provider of luxury, professional-only, organic and clean beauty products. Over the last 20 years, the company has built a community of professional beauty customers by concentrating on health, wellness and the continued education of the professional beauty artisan.
“Simply Organic has shown strong growth over the last three years and resiliency during the pandemic,” Sternberg says, detailing why the beauty brand is a promising business for West Lane. “The company has just scratched the surface in terms of its market penetration, leading us to believe the company can expect to see significant sustained growth moving forward.”
Following the acquisition, Simply Organic is seeking to continue executing and expanding on its current beauty strategy. Scott Mitchell, the company founder, remains a significant shareholder and will continue to as chief executive officer and a member of the board of directors.
“We are very excited to partner with Scott and the entire Simply Organic team to continue growing the company's platform into a larger, more comprehensive and global ecosystem of brands, enthusiastic beauty professionals and innovative technologies, focusing on the ongoing success of independent beauty professionals and salons,” adds Sternberg.
Combining with other brands
The private equity firm continues to look for opportunities in the broader wellness and beauty space. West Lane Capital Partners sees numerous synergies between Simply Organic and other companies in the West Lane portfolio, such as the Body Spa Group, which provides salon and wellness rentals for entrepreneurs, and flower-inspired digital beauty brand Blossom Beauty.
“We could not have selected a more accretive growth partner in West Lane and the opportunity to work with other beauty brands within West Lane's portfolio, including Blossom Beauty and the Body Spa Group, represents an exciting and promising opportunity for partnership and growth,” expresses Mitchell.
Today’s consumers want access to organic items that sit in the clean beauty segment. Wentz shares: “One of the biggest demands we see is the ability to remain agile and continue to innovate best in class clean products.”
Sternberg adds: “Consumers and professionals are increasingly aware of the health risks associated with certain beauty products and expect brands to offer the safest and most effective products available to the market. This means having a robust product management and development capability, something that Simply Organic excels at.”
West Lane Partners has recognized the company for its track record of ensuring it creates and sells products that reflect the newest and cleanest technologies and ingredients available. “Simply Organic Beauty also effectively utilizes technology to allow its customers to seamlessly order products through their online platform, which also guides them into selecting the appropriate products that best suits their needs,” Sternberg relays.
Simply Organic has recently unveiled its innovative, professional-centric approach to the beauty industry with its professional-to-consumer (P2C) beauty referral platform, Holistic Hair Tribe. The network enables salons to sell products directly from Simply Organic's collection of beauty items and deliver them directly to consumers’ homes.
“We would like to see Simply Organic continue to increase its market share with salon professionals and continue to build out its P2C Holistic Hair Tribe platform which continues to achieve very strong growth,” explains Sternberg. “We believe that Simply Organic Beauty’s community of loyal salon professionals is one of its greatest assets, and through its affiliate program these professionals have the opportunity to financially benefit from the growth of the business.”
In the long term, West Lane Partners plans to further broaden the scope of Simply Organic Beauty’s product portfolio into additional beauty and wellness categories.
By Natasha Spencer-Jolliffe, BPC Insights Senior Journalist