Revolution Beauty Group PLC has acquired certain intellectual property assets and product inventory of US cosmetics brand BH Cosmetics Holdings for US$3.9mln. Funding came from the group's existing cash resources.
BH Cosmetics filed for Chapter 11 bankruptcy protection on January 14, 2022.
The direct-to-consumer (DTC) US brand relied on celebrity partnerships with Australian rapper Iggy Azalea and American rapper Doja Cat. With a focus on "clean, cruelty-free, vegan, and high-quality cosmetics," the company failed to maintain profitability after a brand revamp. BH has 6.5mln social media followers.
Through 2022, mass-market beauty retailer Revolution Beauty will integrate BH Cosmetics' operations into its broader operations.
BH will be re-energised with Revolution Beauty's new products, taking advantage of the duo's relationships in the US, UK, and internationally. The acquisition is expected to generate minimal sales during the first half of the financial year ending February 28, 2023 as Revolution Beauty onboards new BH suppliers, builds stock levels, and integrates BH into its operations.
BH generated US$55.8mln in net revenue in 2019 and was only distributed via online and retail channels in the US and Germany. A decrease in revenue to US$33.7mln in 2020 was attributed to changes in beauty routines brought about by Covid-19.
Badass with Heart (BH) cosmetics was a DTC colour cosmetics brand launched in 2009 to appeal to Millennial/Generation Z consumers and retailers across the US and Germany. BH was majority owned by MidOcean Partner, which acquired it in 2018.
Based on the filings, BH Cosmetics owed US$23.5mln in debt and another $15mln in unpaid rent and other expenses.