Marathon Partners Urges E.l.f. Beauty To Sell Itself Or Revamp

(RTTNews) - Marathon Partners Equity Management LLC, which owns about 8.5% of e.l.f. Beauty Inc. (ELF), plans to urge the discount cosmetics seller to either start a process to sell itself or refocus on core operations and reduce costs, the Wall Street Journal reported citing a draft of a letter to its chief executive and chairman. Marathon could release the letter publicly as soon as Wednesday.

The New York-based hedge fund also believes private-equity firm TPG, whose growth-investing arm owns nearly 30% of e.l.f. and has three representatives on the board, holds too much influence and wants new directors who are unaffiliated with the private-equity firm added to the board, the Journal reported.

E.l.f. Chairman and CEO Tarang Amin reportedly, said the company hadn't yet received the letter but would review it "as we would any other stockholder communication."