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Zeus acted as Financial Adviser to Revolution Beauty Group on its acquisition of certain assets from BH Cosmetics

Zeus acted as Financial Adviser to Revolution Beauty Group plc (“Revolution Beauty”, or the “Group”) in connection with its US$3.9 million acquisition of certain intellectual property assets and inventory from US born cosmetics brand BH Cosmetics Holdings, LLC (“BH” or “BH Cosmetics”).

Company information

This highly complementary 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 is a brand with a strong point of view, producing 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 (“DTC”) channel, and several focused retailers across the US, 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 US$55.8 million and was only distributed across online and retail channels in the US and Germany. Covid-19 significantly impacted the business with revenue decreasing to US$33.7 million in 2020, generating a loss of US$22.5 million, caused by high operating costs.

Revolution Beauty acquired the BH brand, its social media accounts, customer database and certain inventory out of US Chapter 11 Bankruptcy.

Revolution Beauty, is an AIM quoted global mass beauty and personal care business which operates a multi-brand, multi-category strategy and sells its products both DTC via its e-commerce operations, and in both physical and digital retailers through wholesale relationships. Zeus also acts as Revolution Beauty’s Nominated Advisor and Broker.

Zeus Team

Zeus provided lead advisory services to Revolution Beauty Group Plc. Members of the Zeus team included Jordan Warburton and Alex Fowler.

Adam Minto

Co-Founder and CEO of Revolution Beauty

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. 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.

Like us, BH has a strong heritage as a challenger brand and has disrupted the traditional beauty market in the US through their innovation. 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.

Jordan Warburton

Director of Corporate Finance, Zeus

It has been a pleasure to work with the Revolution Beauty team once again following its successful IPO in July 2021 and its acquisition of Medichem Manufacturing Ltd in November 2021 and it is great to see the group continuing to execute its M&A strategy. We wish Revolution Beauty and BH every success and look forward to continuing to support the team on its journey.

Contact

If you would like further information, please get in touch with our team.

Nick Cowles Co-Head of Investment Banking+44 (0) 161 393 1977LinkedIn Scan with your phone camera to add to contacts Download vCard
Benjamin Robertson Head of Equity Capital Markets+44 (0) 203 829 5625LinkedIn Scan with your phone camera to add to contacts Download vCard

This web page constitutes a financial promotion for the purposes of section 21 of the Financial Services and Markets Act 2000 and has been approved by Zeus Capital Limited, which is authorised and regulated by the Financial Conduct Authority.