02.25.22
Revolution Beauty Group plc, a multi-brand, multi-category, and multi-channel mass beauty innovator, has acquired intellectual property assets and inventory from BH Cosmetics Holdings LLC for a consideration of $3.9 million.
The acquisition was financed through the group's existing cash resources.
In 2019, BH delivered net revenue of $55.8 million and was only distributed across online and retail channels in the U.S. and Germany. Covid-19 significantly impacted the business with revenue decreasing to $33.7 million in 2020, generating a loss of $22.5 million, caused by high operating costs.
Given this, sales attributable to the acquisition during the first half of the financial year ending February 28, 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 U.S. Bankruptcy Court on January 14, 2022. Following U.S. court approval on February 18, 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.
“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,” said Adam Minto, CEO of Revolution Beauty. “We're confident the acquisition will deliver sustainable value for all our stakeholders over the long-term"
The acquisition was financed through the group's existing cash resources.
Benefits of the Purchase
The 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 produces vegan and cruelty-free cosmetics for 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 U.S., 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 $55.8 million and was only distributed across online and retail channels in the U.S. and Germany. Covid-19 significantly impacted the business with revenue decreasing to $33.7 million in 2020, generating a loss of $22.5 million, caused by high operating costs.
Plans for the Brand
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-energize the BH brand with new products and utilize both Revolution Beauty and BH's relationships in the U.S., UK and internationally.Given this, sales attributable to the acquisition during the first half of the financial year ending February 28, 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 U.S. Bankruptcy Court on January 14, 2022. Following U.S. court approval on February 18, 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.
“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,” said Adam Minto, CEO of Revolution Beauty. “We're confident the acquisition will deliver sustainable value for all our stakeholders over the long-term"