25th Feb 2022 12:04
(Alliance News) - Revolution Beauty Group PLC said on Friday it acquired assets of a distressed US cosmetics company to accelerate expansion into key markets, such as the US.
The beauty and personal care products maker and retailer has completed a USD3.9 million acquisition of certain intellectual property assets and inventory of BH Cosmetics Holdings LLC. Revolution Beauty's subsidiary RBI Acquisition Holdings LLC bought the BH brand, social media accounts, customer database and certain inventory on February 18. The deal was financed through its cash reserves.
Shares in Revolution Beauty were trading up 5.4% to 127.50 pence each in London on Friday shortly before midday.
Badass with Heart Cosmetics is a US cosmetics brand, specialising in ethical, budget cosmetics for its young customer base.
"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," said Chief Executive Officer Adam Minto.
BH will be consolidated into Revolution's existing operations over the coming year, and new products will be launched under the brand. Revenue contributions from the brand for the first half of the year ending February 28 2023 are expected to be "minimal".
BH had delivered net revenue of USD55.8 million back in 2019.
However, it was hit hard by Covid with net revenue dropping to USD33.7 million in 2020. It generated a loss of USD22.5 million in 2020 owing to high operating costs, and eventually filed for bankruptcy in US Bankruptcy Court in January of this year.
By Elizabeth Winter; [email protected]
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