e.l.f. Beauty holder Marathon Partners urges company to explore sale
In a regulatory filing, Marathon Partners disclosed that the firm and Mario Cibelli hold an 8.0% stake in e.l.f. Beauty. On November 8, Marathon Partners sent an e-mail to the company's Chairman and CEO Tarang Amin, certain members of the company's board of directors and senior executives at TPG Growth regarding the company's operating performance and share price. Marathon stated its belief that it would be in the best interests of the company's shareholders to commence an auction process that seeks a sale of the company to the highest bidder. Marathon further stated TPG's underlying limited partners that are invested in the company would also benefit from an auction process, especially given their continued liquidation of their shares. "In the email, Marathon demonstrated in a table to Mr. Amin that the Issuer's poor performance over time was not an opinion but historical fact. Marathon stated that increases in overhead and compensation had not allowed for profit growth over an extended period of time. Marathon further expressed its belief that the Board did not have the luxury of ignoring the Issuer's share price and the large discount to private market value. Marathon stated that given the Board's fiduciary obligation to shareholders, it must weigh a sale of the Issuer versus any other strategies that Mr. Amin or other Board members may pursue to benefit shareholders," the filing stated.