It’s borderline unbelievable that Pat McGrath‘s cosmetics company, Pat McGrath Labs, was founded just a mere two years ago. The company is known to sell-out almost instantly of their limited edition items (personally, I can never click just fast enough) and a backstage favorite of fashion weeks most coveted shows.
On Monday, Eurazeo Brands, a New York City investment firm, announced that they would be a minority shareholder in Pat McGrath Labs, with a $60 million dollar investment. This is huge for McGrath! This investment brings the total external investments in the company to $88 million dollars. While the press release did not disclose details of the deal, industry sources claim that the investment is equivalent to somewhere between 5 and 8 percent of the company and according to a report by WWD, giving it a valuation of over $1 billion dollars.
Jill Granoff, CEO of Eurazeo Brands, stated via press release, “We are honored to be working with Pat, whose vision, talent and trailblazing history in the beauty industry have set Pat McGrath Labs up to be one of the most authentic and innovative makeup brands to ever come to market.” She added, “We’re excited to combine our experience of building global beauty and fashion brands with Pat and her team’s unmatched creativity and passion.”
While this is a huge accomplishment for a Black woman, it’s a major shake up in the makeup and cosmetics industry. Forbes recently valued Kylie Cosmetics at $800 million….Pat McGrath Labs is surpassing this by almost quarter of a million dollars. Yasssss, Queen! Via press release, McGrath stated,
“It has always been my dream to create an iconic beauty brand that goes beyond the usual limitations, that lives outside the parameters of what is expected.”
From her popular lipsticks to her highlighters that are known to sell-out within an hour, she’s doing just that.
The new investment dollars will help the company further expand. Right now the brand is offered online at PatMcGrathLabs.com and Sephora.com as well as in 54 Sephora doors. The brand will expand to 90 Sephora doors in the Fall as well as add merchandise and apparrel to the brand (Pat McGrath Labs t-shirts, anyone?). The compnay will continue with it’s successful drop product release strategy, of releasing limited edition (and quantity) products at specific times.
McGrath told Fashionista.com, “The next phase is to continue our incredible trajectory. We have been so blessed to have such an engaged and passionate customer base and the aim is to continue to provide them with more ground-breaking, straight-from-the-runway products and a makeup experience they cannot get anywhere else. I get so much joy and satisfaction when I see how much our loyal customers love the products, it fuels us to come up with even more innovative creative ideas.”
Create, Queen! We are (impatiently) waiting.