By Abigail Summerville
NEW YORK (Reuters) - Body Art Alliance is exploring options including a sale that could value the supplier of tattoo and body art products at nearly $1 billion, including debt, according to people familiar with the matter.
The Hanover, Maryland-based company is working with investment bank Jefferies Financial Group Inc on the sale process, the sources said, requesting anonymity because the matter is confidential.
Body Art Alliance expects to generate about $70 million of earnings before interest, taxes, depreciation and amortization (EBITDA) in 2023 and about $250 million of revenue, the sources added.
Representatives for Body Art Alliance and Jefferies declined to comment.
Body Art Alliance's move to explore a sale comes amid a global surge in the popularity of body art, especially among the younger generation. More than 40% of U.S. millennials sport tattoos, according to an Ipsos poll published in 2021. The global tattoo industry is growing at nearly 10% every year, according to some market reports.
The company was launched in 2020 by the founders of four body art companies - FK Irons, Painful Pleasures, NeoMetal and World Famous Ink. It is now affiliated with dozens of global brands that sell tattoo and body art products, which include body ink and piercing equipment, to artists and customers.
Through its partnerships with distributors and other tattoo brands, the company's products are sold in 45 countries across five continents, according to its website.