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Gemspring Capital Expands Portfolio with Creative Labs Acquisition

In a significant move within the private equity sector, Gemspring Capital Management, LLC has announced the acquisition of Creative Labs, a prominent manufacturer of branded and contract-manufactured haircare and skincare products. The announcement was made on February 10, 2025, as Gemspring continues to solidify its position in the middle-market investment landscape.

Strategic Acquisition

This acquisition includes not only Creative Labs but also its complementary entity, United Hair Care, marking a pivotal moment for both organizations. The partnership has been formed in collaboration with Creative Labs’ CEO, Brett Simmons, who is enthusiastic about the potential for accelerated growth and expanded market presence that this partnership brings. "This partnership marks a pivotal moment for our business, and Gemspring's expertise will be instrumental in realizing our vision," Simmons noted.

Creative Labs boasts a diverse portfolio of brands that reach consumers through various distribution channels, including retail stores, e-commerce platforms, and professional hair salons. Their vertically integrated operations, which encompass in-house research and development, product testing, and large-scale manufacturing, allow them to stay on the cutting edge of beauty trends. This unique operational model provides Creative Labs with the agility to adapt quickly to changing consumer demands and deliver innovative solutions continuously.

Vision for Growth

With this strategic acquisition, Gemspring aims to leverage its deep industry insight and commitment to value creation to enhance the capabilities of Creative Labs. Brett Simmons expressed a vision of not only driving innovation but also nurturing customer relationships and expanding the company's reach across all sales channels. The symbiotic relationship between Gemspring’s management expertise and Creative Labs’ established brand presence is expected to yield substantial benefits.

Kristin Steen, Managing Director at Gemspring, highlighted the significance of this acquisition, stating, "Creative Labs has earned a reputation for excellence and innovation in the hair and personal care industry. We are excited to partner with Brett and his talented team to drive the company’s next phase of growth."

Creative Labs operates from its headquarters in Eagan, Minnesota, and has a proven track record of delivering high-quality haircare and skincare solutions. The company’s commitment to excellence and innovation positions it as a revered player in the beauty sector, making its acquisition a strategic fit for Gemspring.

Forward-Looking Approach

As Gemspring Capital embarks on this new chapter with Creative Labs, the focus will be on maintaining the integrity of the creative process while optimizing operational efficiencies. This acquisition aligns with Gemspring's broader strategy of partnering with dynamic management teams and investing in businesses that showcase significant growth potential in various sectors, from consumer services to healthcare products.

In terms of financial advisory, Intrepid Investment Bankers, LLC provided guidance for the deal, while legal representation was handled by McDermott Will Emery, LLP. The financial specifics of the transaction remain undisclosed.

About Gemspring Capital

Founded in Westport, Connecticut, Gemspring Capital manages approximately $3.8 billion in capital, specializing in private equity investments that target middle-market companies across various industries. With a focus on flexible capital solutions and a keen partnership approach, Gemspring seeks to support talented management teams in driving sustainable growth and competitive advantages in their respective markets.

To learn more about Creative Labs and their offerings, visit www.creativelabsinc.com and for more insights into Gemspring Capital's operations, check www.gemspring.com.