Revolution Beauty Group acquires BH Cosmetics for $3.9m
(REVB ) said it has completed a ‘highly complementary’ acquisition of the United States born cosmetics brand BH Cosmetics for a consideration of $3.9 million.
Revolution, a UK-based beauty and personal-care products company, said the acquisition will enhance its strategy to offer global consumers ‘quality beauty products at affordable prices.’
Launched in Los Angeles in 2009, Badass with Heart (BH) produces 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 channel, and several focused retailers across the US, and Germany. Revolution believes the brand, known for its makeup brushes, strengthens the categories within its current portfolio.
In 2019, BH delivered net revenue of $55.8m and was only distributed across online and retail channels in the US and Germany, with Covid-19 having significantly impacted the business with revenue falling to $33.7m in 2020, generating a $22.5m loss amid high operating costs.
Revolution said it will consolidate BH Cosmetics into its wider operations over the course of 2022, leveraging synergies across existing product development, supply and distribution.
The company outlined that it 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, it highlighted.
Last month, BH Cosmetics filed for Chapter 11 Bankruptcy Code protection in the US Bankruptcy Court. Following approval last week, and post satisfaction of customary closing conditions,
Revolution’s subsidiary, RBI Acquisition Holdings, became the purchaser of the BH brand, including its social media accounts, customer database and certain inventory.
Commenting, Adam Minto, CEO of Revolution Beauty said: "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.”
He added: “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 ecosystem of distribution. We're confident the acquisition will deliver sustainable value for all our stakeholders over the long-term"
The acquisition of BH Cosmetics was financed through the Group's existing cash resources.
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