The Wall Street Journal: E.l.f. Beauty urged to sell or revamp by activist investor Marathon Partners

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An activist investor wants cosmetics company e.l.f. Beauty Inc. to give itself a makeover.

Marathon Partners Equity Management LLC, which owns about 8.5% of e.l.f. ELF, +0.30%  , plans to urge the discount cosmetics seller to either start a process to sell itself or refocus on core operations and reduce costs, according to a draft of a letter to its chief executive and chairman viewed by The Wall Street Journal. 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, according to the letter.

E.l.f. Chairman and CEO Tarang Amin, in a statement, said the company hadn’t yet received the letter but would review it “as we would any other stockholder communication.”

An expanded version of this report appears on WSJ.com.

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