Revolution Beauty Group PLC (AIM:REVB) has signed a licensing agreement with Debenhams Group (AIM:DEBS) to develop and distribute beauty and fragrance products across several of the retailer's fashion and lifestyle brands.
Fresh on the back of last week's news that financial regulators will take no action against the company, the beauty products group said the partnership will combine its product development, manufacturing and distribution capabilities with Debenhams's portfolio of consumer brands.
The first collections are expected to launch before Christmas and will include fragrance and gifting ranges for PrettyLittleThing, Karen Millen and boohooMAN. Additional beauty and fragrance launches are planned across other Debenhams Group brands.
Tom Allsworth, chief executive of Revolution Beauty, said: "We are delighted to formally announce our partnership with Debenhams Group. The team at Revolution is already at an advanced stage in developing fragrance products that will launch nationally and internationally through a number of our retail partners."
He added that the relationship between the two businesses had been "completely reset" and said the licences could become "a significant growth opportunity for both businesses".
Under the agreement, Revolution Beauty will be responsible for product development, manufacturing and worldwide distribution. Debenhams Group will receive industry-standard royalty payments based on product sales while retaining approval rights over products, packaging, marketing and retail channels.
Debs boss Dan Finley said: "Beauty is one of the most compelling category opportunities available to us and Revolution Beauty has the capability and relationships to bring tailored collections to market across the full portfolio. We look forward to seeing the first launches come to life."
For Revolution Beauty, the deal is classified as a related party transaction under AIM rules because Debenhams is a substantial shareholder. The company's independent directors, having consulted nominated adviser Strand Hanson, said the terms are fair and reasonable for shareholders.
