Palm Tree LLC is pleased to announce that its wholly-owned subsidiary and registered broker-dealer, Palm Tree Securities LLC, served as the exclusive financial advisor to The Crème Shop in its sale to LG Household & Health Care (“LG H&H”), a publicly listed company on the KRX and affiliate of global conglomerate, LG Group. The all-cash transaction included $120 million paid at closing, with an aggregate value of up to $250 million over the next five years.
Headquartered in Los Angles, The Crème Shop is an innovative, whimsical, and all-inclusive K-Beauty brand with a broad portfolio of premium-quality, cruelty-free beauty products at approachable price points. The Company maintains a strong following amongst the highly coveted Gen Z and Millennial generations and has experienced significant growth across all channels and product categories in recent years. The Crème Shop employs a multi-channel distribution strategy that includes a diverse mix of large national retailers. The Company’s products can be found in more than 13,000 retail locations in the United States, including CVS, Walmart, Urban Outfitters, and Ulta Beauty. The acquisition advances South Korea-based LG H&H’s strategy to expand into the U.S. beauty and personal care market while accelerating The Crème Shop’s pursuit of becoming a global brand.
“The health and beauty industry is an extremely high-penetration category that drives frequent use and extremely loyal customers,” said Stephen Rossi, Managing Director and Co-Founder of Investment Banking at Palm Tree. “Working with these two great brands to facilitate this transaction means The Crème Shop is better positioned to leverage future opportunities within the LG H&H portfolio.”
“We were very pleased to have selected Palm Tree to facilitate our acquisition by LG H&H,” said Olive Kim, CEO of The Crème Shop. “The Palm Tree team took the time to understand our business, effectively communicated our value proposition, and navigated this important transaction as if they were an internal part of our company. We are absolutely thrilled with this outcome and look forward to building a global brand in partnership with LG H&H.”
“The positive outcome of this transaction is a testament to Palm Tree’s key differentiator of having transaction advisory, consulting, and investment banking under one roof,” said Pardis Nasseri, Founder, Managing Director, and President of Palm Tree. “Our unique approach of combining multiple disciplines such as investment banking, strategic finance, due diligence, and interim financial management capabilities is the modern approach to M&A that provides the most efficient and effective outcomes to our clients.”
Palm Tree is the modern M&A Advisor. A hybrid of consulting, accounting advisory, and investment banking, Palm Tree provides its clients with comprehensive financial, transactional, and operational solutions. Born out of private equity, Palm Tree navigates the time-sensitive, demanding, and uncompromising rigors of M&A from the perspective of owners and investors. This gives its clients the advantage of experience and expertise across the entire continuum of transactions, transitions, and transformations. Since its inception in 2010, Palm Tree has advised on more than 300 transactions totaling more than $45 billion in value. Securities products and services are offered through Palm Tree Securities LLC, member FINRA, SIPC.
More information in our corporate video, on PalmTreeLLC.com, and on LinkedIn.