Leading consumer private equity firm Tengram to
partner with TerraVia to grow Algenist as part of beauty and
personal care partnership leveraging TerraVia’s proprietary
algae-based ingredient platform
TerraVia (NASDAQ:TVIA), a next-generation food, nutrition and
specialty ingredients company and pioneer in algae innovation,
announced today that it has entered into a definitive agreement to
sell a majority interest in the Algenist® skincare brand
(“Algenist”) to Tengram Capital Partners ("Tengram"), a private
equity firm that focuses exclusively on consumer and retail
companies that own exceptional, highly recognizable brands. As part
of the transaction, Tengram and TerraVia have also formed a
partnership focused on leveraging TerraVia’s innovative algae-based
ingredient platform and Tengram’s brand-building and investment
expertise to pursue compelling new opportunities in the beauty
industry.
Algenist is a prestige beauty brand, developed by TerraVia and
launched in 2011, that delivers anti-aging and color correcting
innovation based on a suite of TerraVia’s proprietary algae-based
ingredients including Alguronic Acid® and microalgae oil. The brand
has won broad market recognition, including the prestigious Marie
Claire Prix D’Excellence de la Beaute in 2014, and the 2015 Beauty
O-wards by O, the Oprah Magazine, and has achieved a global
distribution footprint across 23 countries and including major
retail channels like Sephora, ULTA and QVC.
“Algenist is a unique brand in the prestige skin care market,
with a distinct positioning and unique and proprietary ingredients.
The recent bridge into color cosmetics leveraging the patented
ingredient technology creates tremendous potential for the future
growth of the brand,” said Richard Gersten, a Partner at Tengram.
“We are looking forward to working with the existing team and
leveraging our beauty industry expertise to drive continued growth
across all global markets. We are also excited about the broader
partnership with TerraVia and believe that there are great
opportunities to create value.”
Algenist’s CEO, Frederic Stoeckel, added, "Having started the
brand with Jonathan and the TerraVia team back in 2011, I am
thrilled to lead Algenist as its Chief Executive Officer at this
exciting time in the brand's development. The partnership with
Tengram and TerraVia will help continue to build upon the brand’s
current momentum."
Upon the close of the transaction, TerraVia will retain an
ownership interest in Algenist of approximately 20% and will
continue to supply active ingredients formulated in the Algenist
product line. As part of the transaction, Tengram will also
contribute significant capital to the business to accelerate
broader commercialization. At close, TerraVia will receive
approximately $20 million.
As part of the agreement, Tengram and TerraVia have also agreed
to create a partnership focused on identifying additional
opportunities to utilize algae-based ingredients across all
segments of the beauty industry. By leveraging TerraVia’s
innovative suite of algae-based technology that have been validated
by major consumer packaged goods companies, combined with Tengram’s
beauty industry expertise and outstanding track record in
brand-building, the partners will target Tengram-led opportunities
to invest behind beauty and personal care brands that would benefit
from the differentiated positioning and compelling science offered
by TerraVia’s algae-based ingredients.
“We are enthusiastic about our partnership with Tengram as we
work together to help Algenist achieve its extraordinary growth
potential,” said Jonathan Wolfson, Co-Founder, Chairman and CEO of
TerraVia. “This partnership allows us to focus our captive
commercial operations on foods and nutrition, while maintaining
participation in Algenist’s future success and gaining access to
Tengram’s expertise and leadership to participate in beauty and
personal care opportunities commercializing our proprietary algae
platform.”
TerraVia’s Board of Directors has approved the transaction,
which is expected to close by the end of the third quarter of 2016
subject to customary closing conditions. Rothschild & Co.
provided advisory services to TerraVia.
About TerraVia
TerraVia is a next-generation food, nutrition and specialty
ingredients company that harnesses the power of algae, the mother
of all plants and earth's original superfood. With a portfolio of
breakthrough ingredients and manufacturing, the Company is well
positioned to help meet the growing need of consumer packaged goods
and established and emerging food manufacturers to improve the
nutritional profile of foods without sacrificing taste, and to
develop select consumer brands. The Company also manufacturers a
range of specialty personal care ingredients for key strategic
partners. Headquartered in South San Francisco, the Company's
mission is to create products that are truly better for people and
better for the planet. For additional information, please visit
TerraVia's website at www.terravia.com.
TerraVia, the TerraVia logo and other trademarks or service
names are the trademarks of TerraVia Holdings, Inc.
About Tengram Capital Partners
Tengram Capital Partners is a private equity firm that focuses
exclusively on leading consumer and retail companies that own
strong recognizable brands. The team has a diverse background of
consumer investing and operating expertise that assists and guides
company management to unlock the true potential of their brand.
Tengram invests in both traditional "growth" and
"restructuring/turnaround" situations in either the public or
private sectors. Current investments for Tengram include
Differential Brands Group, Cos Bar, Zanella, This Works, Luciano
Barbera, Tommie Copper, Active Ride Shop, DevaCurl, Laura Geller
Beauty, NEST Fragrances and Sequential Brands Group. Tengram's
website is http://www.tengramcapital.com.
Forward Looking Statements
This press release contains certain forward-looking statements
within the meaning of the Private Securities Litigation Reform Act
of 1995 about TerraVia, including statements that involve risks and
uncertainties concerning: the closing of a sale of TerraVia’s
Algenist business and the amount of proceeds to be received by
TerraVia; the activities that will be pursued in the future by
TerraVia and Tengram and the ability of those activities to create
value; the ability to grow the Algenist business and expand
commercialization; the effect of Algenist products on consumers;
TerraVia’s future business focus; and TerraVia’s ability to
maintain its relationships with its partners. When used in this
press release, the words “will,” “expects,” “intends” and other
similar expressions and any other statements that are not
historical facts are intended to identify those assertions as
forward-looking statements within the meaning of the Private
Securities Litigation Reform Act of 1995. Any such statement may be
influenced by a variety of factors, many of which are beyond the
control of TerraVia, that could cause actual outcomes and results
to be materially different from those projected, described,
expressed or implied in this press release due to a number of risks
and uncertainties. Potential risks and uncertainties include, among
others: TerraVia’s ability to meet the closing conditions of the
Algenist sale; TerraVia’s ability to successfully transition its
corporate strategy and identity; implementation risk in deploying
new technologies; its ability to successfully develop and
commercialize products; its ability to maintain strategic
collaborations; market acceptance and adoption of its products by
end-users; and its access, on favorable terms, to any required
financing. Accordingly, no assurances can be given that any of the
events anticipated by the forward-looking statements will transpire
or occur, or if any of them do so, what impact they will have on
the results of operations or financial condition of TerraVia.
In addition, please refer to the documents that TerraVia, Inc.
files with the Securities and Exchange Commission, including its
Annual Report on Form 10-K and Quarterly Report on Form 10-Q, as
updated from time to time, for a discussion of these and other
risks. You are cautioned not to place undue reliance on
forward-looking statements, which speak only as of the date of this
press release. TerraVia is not under any duty to update any of the
information in this press release.
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TerraViaCorporate Communications:Genet
Garamendipress@terravia.comOrJeff Majtyka / Taylor KrafchikJM
Strategic Communications Group646-776-0886jeff@jmscgroup.com /
taylor@jmscgroup.comOrTengram Capital PartnersBrenda
DeLuca646-432-1610