Revolution Beauty Group, a well-known beauty company based in the UK, has recently made a strategic move by acquiring BH Cosmetics, a popular brand from the US. BH Cosmetics emerged from Chapter 11 bankruptcy, and this acquisition by Revolution Beauty aligns perfectly with their digital-first and global platform strategy. The main aim of this acquisition is to strengthen Revolution Beauty’s presence in crucial markets, especially in the US, while also expanding their brand reach in key categories. This deal was finalized for a total of $3.9 million, using Revolution Beauty’s existing cash resources.

Originally founded in Los Angeles back in 2009, BH Cosmetics, also known as Badass with Heart, has its unique perspective in the beauty industry. The brand has built a strong following among loyal Gen Z consumers who prioritize high-quality, vegan, and cruelty-free cosmetics at affordable prices. BH Cosmetics currently boasts over 6.5 million social media followers and offers its products through direct-to-consumer channels, as well as various retailers in the US and Germany. One of the notable strengths of the brand lies in its makeup brushes, which will undoubtedly enhance the existing portfolio of Revolution Beauty.

While BH Cosmetics achieved a net revenue of $55.8 million in 2019, the pandemic had a significant impact on its business. As a result, their revenue decreased to $33.7 million in 2020, leading to a loss of $22.5 million. Revolution Beauty plans to fully integrate BH Cosmetics into its operations throughout 2022, taking advantage of the potential synergies in product development, supply, and distribution. Additionally, the company aims to revitalize the BH brand by introducing new products and leveraging the relationships of both Revolution Beauty and BH Cosmetics in the US, UK, and international markets.

It is important to note that due to the integration process and the onboarding of new suppliers, Revolution Beauty does not anticipate significant sales attributable to the BH Cosmetics acquisition during the first half of the financial year ending in February 2023.

Adam Minto, the CEO of Revolution Beauty, expressed his excitement about the acquisition, highlighting BH Cosmetics as an iconic US-born brand with a strong presence on digital and social platforms. The brand’s commitment to cruelty-free and vegan products perfectly aligns with the ethos of Revolution Beauty. Minto believes that BH Cosmetics’ diverse range of color cosmetics and brushes will seamlessly complement Revolution Beauty’s existing business. This acquisition is expected to accelerate Revolution Beauty’s growth trajectory in the US, while also leveraging its established global ecosystem of distribution networks.

In conclusion, Revolution Beauty’s acquisition of BH Cosmetics serves multiple purposes. Not only does it expand their portfolio and strengthen their digital-first strategy, but it also fortifies their position in the highly competitive US market. With the integration of BH Cosmetics into their operations, Revolution Beauty is poised for continued growth and success in the beauty industry.

Useful links:
1. Revolution Beauty Group
2. BH Cosmetics