Pat McGrath Labs Is Reportedly Exploring An Asset Sale With Bids Due By January 2026 – AfroTech
Beauty trend setter Pat McGrath is exploring an asset sale of her beauty company.
Pat McGrath Labs was founded in 2015 and launched its first product, Gold 001, a gold-pigmented mixing liquid used on eyes, lips, limbs, or lashes. It “sold out in record-breaking time” following its launch on social media, according to the brand’s website. One thousand units sold on the site in six minutes, Modaes reported.
The brand is sold at retailers including Sephora, Ulta, Nordstrom, Bluemercury, Bergdorf Goodman, Harrods, Revolve, and Selfridges, notes the brand’s website. At Selfridges, it became the retailer’s best-selling beauty brand after launching in stores in April 2019. McGrath’s makeup looks have also appeared on runways for Dior, Prada, Gucci, and Balenciaga, per Pat McGrath Labs.
McGrath has served as British Vogue’s beauty editor-at-large since 2017, as AFROTECH™ previously reported.
In 2018, Pat McGrath Labs reached a $1 billion valuation, supported by a $60 million investment from Eurazeo Brands in exchange for 5% to 6% equity in the business, Modaes reports. Eurazeo has since sold its stake.
Asset Sale Being Explored
The venture could also soon be transitioning ownership. Hilco Global, a U.S.-based financial services firm, is managing a potential sale of Pat McGrath Labs, according to Fashion Network USA. The beauty company is looking “to align its financial framework with the enduring strength and creative leadership of the brand” with partners through restructuring and recapitalization processes, according to Modaes.
Bids are due by Jan. 26, with an auction scheduled for Jan. 27, notes Fashion Network USA.
The news follows the company reporting $50 million in revenue in 2024, alongside operational changes that included executive turnover and layoffs, per Modaes. It also comes months after McGrath was appointed creative director of the La Beauté Louis Vuitton cosmetics line.
“Working backstage for over 20 years at Louis Vuitton fashion shows, I am thrilled to now play such a key role in the launch of La Beauté Louis Vuitton, which is the result of extraordinary craftsmanship, creativity, and innovation,” McGrath said in a press release.
