NEW YORK--(BUSINESS WIRE)--TruArc Partners (“TruArc”), a middle market focused private equity firm, announced today that it has invested in DMI Personal Care (“DMI”) alongside President Douglas Sylva and COO Elaine Balady. DMI will combine with Trademark Cosmetics, a TruArc portfolio company located on the West Coast. The partnership establishes a national footprint, with strategically-located facilities on both the east and west coasts to support customers’ growth as well as provide redundant production capabilities. The investment in DMI reinforces TruArc’s goal of building a beauty and personal care CDMO platform with market-leading innovation, speed-to-market, quality and customer service.
Sylva acquired DMI in 2011 and, with Balady, transformed DMI into a preferred innovation, product development and complex manufacturing partner for dynamic, high growth beauty and personal care brands. DMI operates a 320,000-square-foot, FDA-regulated facility in Wharton, NJ, featuring an in-house R&D and product development lab and state-of-the-art production capabilities. The facility offers a wide range of compounding and filling capabilities. DMI, with Sylva’s vision, developed a customized operating system that has elevated the management of a complex business, assisting both employees and customers to reach new levels of performance capabilities.
“We set out with the goal of building a world-class company that is based upon transparency with our customers and trust in our employees,” said Sylva. “We are thrilled to have found partners who share these values in TruArc. Their resources and capital will help us to expand upon them into the future.”
Balady added, “TruArc’s investment in DMI will allow us to further enhance our service offering and capabilities, driving innovation and continued growth for our expansive and prestigious client portfolio, and as importantly, to provide our exceptional management team with enormous opportunities.”
Kristopher Dover will serve as CEO of the organization, with Sylva remaining as President and Balady remaining as COO. Both Sylva and Balady are investors in the combined entity.
“We have been thoroughly impressed by DMI. We share core values focused on superior customer service, innovation, quality, integrity, and continuous improvement,” stated Dover. “I look forward to working closely with Doug and Elaine as well as the entire DMI organization in an effort to drive success for our fantastic customer base.”
“This partnership marks another significant step in executing our thesis to build a premier CDMO platform focused on the attractive skincare, bodycare, color cosmetics and haircare categories,” said Gerald Sheehan, Partner at TruArc. “We intend to continue supporting this platform through significant investments in both organic initiatives as well as future acquisitions that enhance our capabilities and geographic reach.”
Guggenheim Securities, LLC served as lead financial advisor and Raymond James provided co-advisory support to TruArc. Carriage Hill served as financial advisor to DMI. Weil, Gotshal & Manges acted as legal counsel to TruArc and Akerman LLP acted as legal counsel to DMI. KPMG acted as accounting and tax advisor to TruArc.
About DMI Personal Care
Located in Wharton, NJ, DMI Personal Care is a leading contract developer and manufacturer of beauty and personal care products to growth-oriented customers. DMI offers product development and innovation, regulatory compliance, process engineering, manufacturing, and filling services in a cGMP facility with FDA registration and UL certification. DMI focuses on the skincare, bodycare, color cosmetics and haircare product categories. To learn more about DMI Personal Care visit: https://dminj.com/
About Trademark Cosmetics
Located in Riverside, CA, Trademark Cosmetics is a contract manufacturer of beauty and personal care products, partnering with a variety of established and emerging brands. Trademark Cosmetics provides product development, material sourcing, and filing services with a focus on unique formulation capabilities and packaging technologies requiring significant technical expertise. With a foundation rooted in innovation and comprehensive manufacturing capabilities, the Company draws on its wide variety of specialized equipment to create customized solutions aligned with a brand’s vision. Trademark Cosmetics focuses on the haircare, bodycare and skincare product categories. To learn more about Trademark Cosmetics visit: https://trademarkcosmetics.com/
About TruArc Partners
TruArc Partners is a private equity firm focused on middle-market control investments. TruArc focuses on companies in attractive sub-sectors across specialty manufacturing and business services. The TruArc investment team collaborates with its operating partners and portfolio management teams to create value through a transformational growth strategy led by organic or acquisition-driven growth. To learn more about TruArc visit: www.truarcpartners.com.
Disclosure: All endorsements and/or testimonials are from current or former portfolio company executives about TruArc’s ability to provide operational support to their companies. In certain cases, the executives are investors or co-investors in TruArc’s vehicles. The executives have not been paid, directly or indirectly, for their testimonial or endorsement but as an investor or co-investor they are inherently incentivized to endorse TruArc.
