TIDMREVB
RNS Number : 7842C
Revolution Beauty Group PLC
25 February 2022
REVOLUTION BEAUTY GROUP PLC
("Revolution Beauty", the "Group" or the "Company")
ACQUISITION OF BH COSMETICS ASSETS
Acquisition complements Revolution Beauty's existing portfolio,
and builds upon it's digital first and global platform strategy
Accelerates expansion in key markets, most notably the US
Builds brand reach in key categories
Revolution Beauty Group plc (AIM: REVB), the multi-brand,
multi-category, and multi-channel mass beauty innovator with proven
global scale, is pleased to announce it has completed the
acquisition of certain intellectual property assets and inventory
(the "Assets") of the US born cosmetics brand BH Cosmetics Holdings
LLC ("BH" or "BH Cosmetics") for a consideration of US$3.9 million.
The acquisition was financed through the Group's existing cash
resources.
This highly complementary acquisition enhances Revolution
Beauty's strategy to offer consumers around the world quality
beauty products at affordable prices. Launched in Los Angeles in
2009, Badass with Heart (BH) Cosmetics is a brand with a strong
point of view, producing vegan and cruelty-free cosmetics for loyal
Gen Z consumers seeking high quality cosmetics at attractive price
points. With over 6.5 million social media followers, BH sells
through its own direct to consumer ("DTC") channel, and several
focused retailers across the US, and Germany. The brand, which is
well known for its makeup brushes, strengthens categories within
the Group's current portfolio.
In 2019, BH delivered net revenue of US$55.8 million and was
only distributed across online and retail channels in the US and
Germany. Covid-19 significantly impacted the business with revenue
decreasing to US$33.7 million in 2020, generating a loss of US$22.5
million, caused by high operating costs.
Revolution Beauty will consolidate BH Cosmetics into the wider
Group's operations over the course of 2022, leveraging synergies
across existing product development, supply and distribution.
Revolution intends to re-energise the BH brand with new products
and utilise both Revolution Beauty and BH's relationships in the
US, UK and internationally. Given this, sales attributable to the
acquisition during the first half of the financial year ending 28
February 2023 are expected to be minimal as Revolution Beauty
onboards new BH suppliers, builds stock levels and integrates BH
into the Group's operations.
BH Cosmetics filed for Chapter 11 Bankruptcy Code protection in
the US Bankruptcy Court on 14 January 2022. Following US court
approval on 18 February 2022 and post satisfaction of customary
closing conditions, Revolution Beauty's subsidiary, RBI Acquisition
Holdings LLC, became the successful purchaser of the BH brand, its
social media accounts, customer database and certain inventory.
Adam Minto, CEO, commented:
"BH Cosmetics is an iconic US-born brand with a loyal fan base
across digital and social platforms and loved by celebs and make-up
artists everywhere. As a cruelty-free vegan brand, BH aligns with
our ethos. Its strong offering in colour cosmetics and brushes,
perfectly complements our business. Bringing BH Cosmetics into the
Group will help us accelerate our growth trajectory in the US and
leverage our existing global eco-system of distribution.
Like us, BH has a strong heritage as a challenger brand and has
disrupted the traditional beauty market in the US through their
innovation. We remain focused on building a British global beauty
brand, capturing the vast market opportunity in mass beauty, and
continuing to win customers around the world. We're confident the
acquisition will deliver sustainable value for all our stakeholders
over the long-term"
For further information:
Revolution Beauty Group
plc
Adam Minto, Founder & CEO Investor.relations@revolutionbeautyp
Tom Allsworth, Founder & Executive lc .com
Chairman
Zeus Capital Limited
(Nominated Adviser & Broker)
Corporate Finance
Nick Cowles / Jamie Peel / Jordan Tel: +44 (0) 161 831 1512
Warburton
Equity Capital Markets Tel: +44 (0) 20 3829 5000
Dominic King / Ben Robertson www.zeuscapital.co.uk
Media enquiries:
Headland Consultancy Tel: +44 (0)20 3805 4822
Rosh Field / Will Smith / Marta Revolutionbeauty@headlandconsultancy.com
Parry-Jones
About Revolution Beauty
Revolution Beauty is a global mass beauty and personal care
business which operates a multi brand, multi category strategy and
sells its products both direct-to-consumer (DTC) via its e-commerce
operations, and in physical and digital retailers through wholesale
relationships.
Today, the Group has a retail footprint of c.15,000 doors across
leading retail chains in the UK, USA and other international
markets. Revolution Beauty has access to a wide customer base,
predominantly aged between 16 and 35, through its digital partners
and own DTC platform. It has established and invested to streamline
its supply chain with its own manufacturing facility in the UK, and
third-party warehousing facilities across the UK, USA and
Australia. The Group has offices in the UK, USA, New Zealand and
Germany. Revolution Beauty currently employs 411 people.
The total mass beauty market was worth $219bn in 2019 and is
expected to grow to $274bn over the next 3 years, driven by a new
marketing era dominated by Social Media and influencers. Revolution
Beauty has been a leading innovator building a significant global
following across social channels, enabling it to spot trends and
respond quickly to consumer demand.
Revolution Beauty strategy
Revolution Beauty Group is disrupting the traditional beauty
market through products that are more accessible to more people.
Through its digital-first strategy, Revolution Beauty brings
trend-led products to market faster than competitors. We invest in
innovative marketing strategies designed to appeal to a wider
audience, and offer products combining quality, inclusivity,
innovation and affordability.
- Ends -
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