Revolution Beauty Regulatory News (REVB)

REVOLUTION BEAUTY GROUP PLC

("Revolution Beauty", the "Group" or the "Company")

ACQUISITION OF BH COSMETICS ASSETS

Acquisition complements Revolution Beauty's existing portfolio, and builds upon it's digital first and global platform strategy

Accelerates expansion in key markets, most notably the US

Builds brand reach in key categories

Revolution Beauty Group plc (AIM: REVB), the multi-brand, multi-category, and multi-channel mass beauty innovator with proven global scale, is pleased to announce it has completed the acquisition of certain intellectual property assets and inventory (the "Assets") of the US born cosmetics brand BH Cosmetics Holdings LLC ("BH" or "BH Cosmetics") for a consideration of US$3.9 million. The acquisition was financed through the Group's existing cash resources.

This highly complementary acquisition enhances Revolution Beauty's strategy to offer consumers around the world quality beauty products at affordable prices. Launched in Los Angeles in 2009, Badass with Heart (BH) Cosmetics is a brand with a strong point of view, producing vegan and cruelty-free cosmetics for loyal Gen Z consumers seeking high quality cosmetics at attractive price points. With over 6.5 million social media followers, BH sells through its own direct to consumer ("DTC") channel, and several focused retailers across the US, and Germany. The brand, which is well known for its makeup brushes, strengthens categories within the Group's current portfolio.

In 2019, BH delivered net revenue of US$55.8 million and was only distributed across online and retail channels in the US and Germany. Covid-19 significantly impacted the business with revenue decreasing to US$33.7 million in 2020, generating a loss of US$22.5 million, caused by high operating costs.

Revolution Beauty will consolidate BH Cosmetics into the wider Group's operations over the course of 2022, leveraging synergies across existing product development, supply and distribution. Revolution intends to re-energise the BH brand with new products and utilise both Revolution Beauty and BH's relationships in the US, UK and internationally. Given this, sales attributable to the acquisition during the first half of the financial year ending 28 February 2023 are expected to be minimal as Revolution Beauty onboards new BH suppliers, builds stock levels and integrates BH into the Group's operations.

BH Cosmetics filed for Chapter 11 Bankruptcy Code protection in the US Bankruptcy Court on 14 January 2022. Following US court approval on 18 February 2022 and post satisfaction of customary closing conditions, Revolution Beauty's subsidiary, RBI Acquisition Holdings LLC, became the successful purchaser of the BH brand, its social media accounts, customer database and certain inventory.

Adam Minto, CEO, commented:

"BH Cosmetics is an iconic US-born brand with a loyal fan base across digital and social platforms and loved by celebs and make-up artists everywhere. As a cruelty-free vegan brand, BH aligns with our ethos. Its strong offering in colour cosmetics and brushes, perfectly complements our business. Bringing BH Cosmetics into the Group will help us accelerate our growth trajectory in the US and leverage our existing global eco-system of distribution.

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"

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About Revolution Beauty

Revolution Beauty is a global mass beauty and personal care business which operates a multi brand, multi category strategy and sells its products both direct-to-consumer (DTC) via its e-commerce operations, and in physical and digital retailers through wholesale relationships.

Today, the Group has a retail footprint of c.15,000 doors across leading retail chains in the UK, USA and other international markets. Revolution Beauty has access to a wide customer base, predominantly aged between 16 and 35, through its digital partners and own DTC platform. It has established and invested to streamline its supply chain with its own manufacturing facility in the UK, and third-party warehousing facilities across the UK, USA and Australia. The Group has offices in the UK, USA, New Zealand and Germany. Revolution Beauty currently employs 411 people.

The total mass beauty market was worth $219bn in 2019 and is expected to grow to $274bn over the next 3 years, driven by a new marketing era dominated by Social Media and influencers. Revolution Beauty has been a leading innovator building a significant global following across social channels, enabling it to spot trends and respond quickly to consumer demand.

Revolution Beauty strategy

Revolution Beauty Group is disrupting the traditional beauty market through products that are more accessible to more people. Through its digital-first strategy, Revolution Beauty brings trend-led products to market faster than competitors. We invest in innovative marketing strategies designed to appeal to a wider audience, and offer products combining quality, inclusivity, innovation and affordability.

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