Closed today, the €3.4m ($3.9m) deal would see Revolution Beauty acquire all Badass with Heart (BH) Cosmetics assets following US court approval after the LA-brand’s filing for Chapter 11 Bankruptcy Code protection on January 14, 2022. The direct-to-consumer (D2C) brand suffered multi-million revenue declines in 2020 – down €20.1m ($22.5m) – amidst the ongoing COVID-19 crisis despite previous solid net revenues of €49.9 ($55.8m) in 2019.
BH Cosmetics offered a range of affordable vegan and cruelty-free makeup brushes, tools and cosmetics, including eye palettes, foundations and liquid lipsticks, across its dedicated D2C channel and a selection of retailers in the US and Germany.
A ‘challenger’ brand with iconic status
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 makeup 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.”
“…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.”
Eyes on the US, UK and international expansion
Revolution Beauty said it would consolidate BH Cosmetics into the wider group’s operations over the course of 2022, across its D2C network, e-commerce presence and wholesale retail partnerships, leveraging synergies across existing product development, supply and distribution.
“Revolution 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,” the company said.