NEW YORK, Sept. 12, 2018 /PRNewswire/ -- Marathon
Partners Equity Management, LLC, a New
York-based investment firm, and its affiliated investment
funds (collectively "Marathon Partners"), which beneficially own
approximately 8.5% of the common stock of e.l.f. Beauty, Inc
("e.l.f." or the "Company") (NYSE: ELF), announced today that it
has delivered a letter to Tarang P.
Amin, e.l.f.'s CEO and Chairman of the Board of Directors
(the "Board"), urging the Board to consider strategic alternatives
including materially reducing operating expenses (including
executive compensation) or a potential sale of the Company.
In its letter to the Board, Marathon Partners recommended two
courses of action for e.l.f.:
- Refocus on core operations: cease evaluation of acquisition
targets, reduce and optimize high-cost structure (including
executive compensation) to fund brand investment, boost margins,
and grow profits well in excess of top-line growth.
- Sale of the Company: If the Board and management are unwilling
to substantially reconsider their current strategy, the only
responsible alternative is to pursue a sale of the Company through
a competitive auction process.
Mario Cibelli commented, "e.l.f.
has created a differentiated and valuable platform that has helped
the core brand stay in close contact with consumers and stand out
with highly productive space at retail partners. While we applaud
the management team for their success thus far, we are confident
that our call for significant change at e.l.f. is correct and
timely. The e.l.f. brand is carrying a great burden, covering
all of the overhead of a platform designed to support multiple
brands as well as an extremely generous compensation plan for
senior executives. Asking shareholders for more patience, while the
burden on profits and the discount to intrinsic value remains so
high, is unacceptable."
Mr. Cibelli continued, "We have significant concerns regarding
TPG's level of influence at the Company and the Board's lack of
urgency in addressing opportunities to increase shareholder
value. Multiple factors, including TPG's role on the
compensation committee, heighten our concerns in this area.
This dynamic necessitates the addition of new Board members who can
better represent the interests of public, non-insider
shareholders. It is time for the Board to move the outside
shareholders to the forefront of the conversation as it seeks the
best way forward for the Company."
The full text of Marathon Partners' letter to the Chairman of
the Board can be viewed at the following link:
https://mma.prnewswire.com/media/743215/Marathon_Partners_Letter.pdf
About Marathon Partners
Marathon Partners Equity Management, LLC is a fundamental,
research intensive investment firm that deploys capital with a
long-term investment horizon.
Investor Contact
Mario
Cibelli
(212) 490-0399
http://www.marathonpartners.com
WARNING REGARDING FORWARD LOOKING STATEMENTS
THIS PRESS RELEASE CONTAINS FORWARD LOOKING STATEMENTS. FORWARD
LOOKING STATEMENTS CAN BE IDENTIFIED BY USE OF WORDS SUCH AS
"OUTLOOK", "BELIEVE", "INTEND", "EXPECT", "POTENTIAL", "WILL",
"MAY", "SHOULD", "ESTIMATE", "ANTICIPATE", AND DERIVATIVES OR
NEGATIVES OF SUCH WORDS OR SIMILAR WORDS. FORWARD LOOKING
STATEMENTS IN THIS PRESS RELEASE ARE BASED UPON PRESENT BELIEFS OR
EXPECTATIONS. HOWEVER, FORWARD LOOKING STATEMENTS AND THEIR
IMPLICATIONS ARE NOT GUARANTEED TO OCCUR AND MAY NOT OCCUR AS A
RESULT OF VARIOUS RISKS, REASONS AND UNCERTAINTIES. EXCEPT AS
REQUIRED BY LAW, MARATHON PARTNERS EQUITY MANAGEMENT, LLC AND ITS
AFFILIATES AND RELATED PERSONS UNDERTAKE NO OBLIGATION TO UPDATE
ANY FORWARD LOOKING STATEMENT, WHETHER AS A RESULT OF NEW
INFORMATION, FUTURE DEVELOPMENTS OR OTHERWISE.
SOURCE
Marathon Partners Equity Management, LLC
View original content to download
multimedia:http://www.prnewswire.com/news-releases/marathon-partners-delivers-letter-to-elf-chairman-and-ceo-calling-for-change-300711484.html
SOURCE Marathon Partners Equity Management, LLC