Beauty Brands Global, the new holding company of Dilesh Mehta, has acquired the French refillable color and fragrance grand La Bouche Rouge out of receivership.

WHO: La Bouche Rouge was founded in 2017 by L’Oréal veteran Nicolas Gerlier with the aim of creating the first cosmetics brand globally to ban microplastics and plastics from everything, including product formulation, manufacturing, and selling. The brand has 22 product references across lip, eye, and face that are vegan and cruelty-free, and a perfume range comprising five fragrances. All products come in recyclable, refillable packaging.

Beauty Brands Global is a new holding company based in Dubai launched by Dilesh Mehta, the CEO and chairman of the British fragrance company Designer Parfums behind scents from Jennifer Lopez, Ariana Grande, and Porsche Design. The vehicle is an opportunity for Mehta to own or enter long-term licenses without the help of outside investors.

WHY: La Bouche Rouge was placed in receivership by the Paris Commercial Court on July 25. The Paris-based firm Asteren was appointed to represent creditors, while the administrative receiver firm BCM was named as the administrator. Despite these financial struggles, the brand continued operating without interruption as it sought to implement payment plans to manage its debts or sell off its assets and activities. During this period, Gerlier had admitted that selling the company was on the table.

IN THEIR OWN WORDS: "This new venture is especially close to my heart and marks the start of a new strategic orientation into luxury and eco-responsible brands, complementing the vision already started with Patou," Dilesh Mehta said on Linkedin. "La Bouche Rouge carries a unique DNA based on innovation, sophistication and a remarkable eco-responsible business model. This makes it the first French Maison of Haute Beauty that fights plastic single-use and combines Luxury with eco-responsibility."

DETAILS:

• Beauty Brands Global acquired La Bouche Rouge out of receivership, becoming the sole shareholder. 
• In February 2022, La Bouche Rouge raised €10 million in funding from investors Mirabeau Asset Management, the Chalhoub Group, and BPI. In September 2020, La Bouche Rouge secured €2.5 million in funding from French public investment bank Bpifrance and a group of business angels.
• Vincent Jeanniard helped Mehta orchestrate the acquisition to ensure a fast transition and will remain as strategic advisor.
• Luxury industry veteran Florence Rollet will join as General Manager. Nicolas Gerlier, the founder of La Bouche Rouge, will continue to act as advisor and creative director.
• According to Beauty Brands Global, the brand reached €3.5 million in net sales in 2022.
• Beauty Brands Global will set up a new company based in Paris to ensure a smooth transition and capitalize on the brand's French origins. It also will take over La Bouche Rouge's formulation laboratory in Orléans. 
• The company will review its economic structure to reduce prices while keeping its fundamentals, such as product formulas, made-in-France approach, and craftsmanship. 
• Beauty Brands Global may acquire or take over the management of other cosmetics brands and plans to revive DDF Skincare, founded by Dr. Howard Sobel, next year.