Revolution Beauty acquires US brand BH Cosmetics

British cosmetics group Revolution Beauty announced Friday it has bought certain intellectual property assets and inventory of US cosmetics brand BH Cosmetics Holdings out of Chapter 11 bankruptcy.

Revolution Beauty said the deal was worth 3.9 million dollars, and will be financed through the group’s existing cash resources.

It said it will “consolidate BH Cosmetics into the wider group's operations over the course of 2022, leveraging synergies across existing product development, supply and distribution”.

It also plans to “re-energise” the BH brand with new products and “utilise both Revolution Beauty and BH's relationships in the US, UK and internationally”.

BH Cosmetics - which stands for Badass with Heart Cosmetics - was launched in LA in 2009. The Gen Z-targeted company specialises in vegan and cruelty-free cosmetics.

The business, which counts over 6.5 million social media followers, sells through its own direct to consumer channel, as well as several focused retailers across the US and Germany.

But the company was hit hard by the pandemic. It posted an annual loss of 22.5 million dollars in 2020, which it said was caused by high operating costs. Its revenue in the year fell 40 percent to 33.7 million dollars.

BH Cosmetics filed for Chapter 11 Bankruptcy Code protection in the US Bankruptcy Court on January 14 of this year.

Revolution Beauty founder and CEO Adam Minto said the acquisition will help the group to accelerate growth in the US while leveraging its existing global ecosystem of distribution.

Minto said: “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.”