North Castle Partners Invests in Palladio Beauty Group

Partnering with CEO to Accelerate Growth

North Castle Partners, a leading private equity firm focused on investments in consumer-driven product and service businesses that promote Health, Wellness, and Active Living announced today that it has completed an investment in Palladio Beauty Group, in partnership with CEO and owner Philip Solomon, further extending North Castle’s presence in the personal care sector. The terms of the investment were not disclosed.

Based in Hollywood, FL, Palladio Beauty Group is a leading marketer of premium color cosmetics and skincare products sold primarily through the beauty supply and professional beauty channels. Palladio’s unique ability to deliver high quality products, rapid innovation, and exceptional customer service, all at a value price point, is the foundation of the company’s success. Palladio enjoys strong brand loyalty among its domestic and growing international customer and consumer base.

“I met the North Castle team a while ago. When it was time to bring in a partner to help with our growth strategy, I immediately thought of North Castle given their industry knowledge, commitment to partnership, and successful track record in beauty and personal care,” said Mr. Solomon. “Based on several meetings and strategy sessions it became clear that we share a vision for continuing to grow Palladio, including: bringing more consumers who seek the Palladio brand into the stores of our US distribution partners, acquiring complementary brands, and continuing to expand the Palladio international footprint. I am very excited to announce this marriage and look forward to working together with the North Castle team.”

“Providing high quality personal care products and services remains a cornerstone of North Castle’s mission to partner with industry leading companies in the Health, Wellness, and Active Living market,” said Lou Marinaccio, a North Castle Managing Director. “Our cumulative experiences in the personal care industry through our successful prior investments in Avalon Organics, Alba Botanicals, and Doctors Dermatologic Formula, combined with our current investments in gloProfessional, Mineral Fusion Natural Brands, and the Red Door Spa has provided North Castle with a deep knowledge base and network to support the Palladio team in accelerating company growth. We are proud to welcome Phil and his team into the North Castle family.”

North Castle Managing Director Jon Canarick added, “We spent time developing a relationship with Phil long before pursuing this investment, and became very impressed with his capabilities as a leader in this fast-moving industry. Palladio’s strong customer service orientation, deep industry relationships, and tight operating efficiency provide a platform for continued growth, both for the Palladio brand and for potential acquisitions of brands that can complement Palladio in serving the company’s growing customer base.”

“We are excited to partner with an impressive entrepreneur/CEO who recognizes the value of North Castle’s prior experience in the personal care and color cosmetics industries. Part of Palladio’s attractiveness is based on its distinctive value proposition as a low cost but high quality “value” product line. While North Castle has generally served the premium price point consumer with innovative products, in the wake of the global recession, we have sought, and with Palladio now have, a partner who provides lower cost but high quality products at a better price within a health, wellness, and active living vertical.” said Chip Baird, North Castle’s Managing Partner.

Morrison Cohen provided legal counsel and Cherry, Beckaert & Holland provided financial advice to North Castle. Goldfinger & Lassar LLP provided legal counsel and Marcum LLP provided tax and financial advice to Palladio Beauty Group.