Boohoo makes "strategic investment" in Revolution Beauty
Boohoo has been moving into beauty in recent periods through its own retail brands and through acquisitions such as Debenhams. But its latest move is a bit different. It’s made what it calls a “strategic investment” in a key beauty pureplay.
The company has acquired a 7.1% stake in Revolution Beauty Group. It said that the investment “builds upon the existing relationship between Boohoo and Revolution Beauty, under which Revolution Beauty products are sold through several of the group's direct-to-consumer brand websites and its online digital department store, Debenhams”.
Boohoo said the investment reflects its belief in the growth potential of Revolution “and it intends to be a supportive stakeholder and long-term partner”.
It’s a similar approach to that taken by a company such as Frasers Group with its strategic investments in Mulberry and Hugo Boss, whose products are sold through its stores.
Revolution Beauty has been growing fast in recent periods both organically and through acquisition. In February this year, for instance, it acquired US operation BH Cosmetics out of Chapter 11 bankruptcy. It said the deal would complement its existing portfolio and build on its digital-first and global platform strategy. It was also intended to accelerate its expansion in key markets, particularly the US, and build brand reach in key categories.
In May, it also reported strong results. Adjusted EBITDA jumped 73% to £22 million. Sales rocketed 42% to £194 million, underpinned by global expansions in Boots and Walgreens. Digital sales generated around 29% of revenues with 71% coming from retail stores.
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