Revolution Beauty Group acquired beauty brand BH Cosmetics for $3.9 million out of Chapter 11 bankruptcy.

WHO: Launched in Los Angeles in 2009, Badass with Heart (BH) Cosmetics creates vegan and cruelty-free cosmetics. The brand sells through its own direct-to-consumer channel and several retailers across the US and Germany.

WHY: The acquisition supports the strategy to "enhance Revolution Beauty's strategy," offering global consumers quality beauty products at affordable prices. Revolution Beauty intends on consolidating BH Cosmetics into its broader operations during 2022, leveraging synergies across existing product development, supply, and distribution.

IN THEIR OWN WORDS: Adam Minto, CEO at 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. Its strong offering in color 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."

He continued, "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."

DETAILS:

• Revolution Beauty Group acquired BH Cosmetics for $3.9 million). The acquisition was financed through the group's existing cash resources.
• On 14 January 2022, BH Cosmetics filed for bankruptcy at the US Bankruptcy Court. Following US court approval on and post satisfaction of customary closing conditions, Revolution Beauty's subsidiary, RBI Acquisition Holdings LLC, purchased the BH brand, its social media accounts, customer database, and certain inventory.
• BH had delivered net revenue of $55.8 million back in 2019 but was hit hard by COVID, with net revenue dropping to $33.7 million in 2020. It generated a loss of $22.5 million in 2020 owing to high operating costs.
• Mid-Ocean Partners made a majority investment in February of 2018. According to WWD, industry sources indicated the brand had between $50 million and $60 million in net sales and was very profitable at the time.