Revolution Beauty explores sale following takeover approach

Revolution Beauty has begun a formal sale process after it received a preliminary takeover approach from an unnamed company.

The beauty company said last week it was “reviewing its funding structure” and was in discussions about a possible equity raise from its key shareholders.

It reported today (21 May) that it had chosen to “widen its strategic options” and would “investigate the sale of the company”.

Revolution Beauty confirmed the party that made the original approach has agreed to participate in the formal sale process.

To support a possible sale, Revolution Beauty has appointed Iain McDonald as non-executive chair and that Alistair McGeorge will stand down from the board.

The firm said McDonald has “significant PLC experience as a non-executive direction, including in takeover situations, and is considered by the board to have the right skills to oversee the immediate strategic steps of the company, including the formal sale process”.

The company said that any party interested in submitting an offer will enter into a non-disclosure and standstill arrangement before being able to participate in the formal sale process.

The retailer will then provide the parties with certain information on its business. It has set a deadline of 11 June for firms to submit expressions of interest.

It added: “The board reserves the right to alter any aspect of the formal sale process outlined above or to terminate the formal sale process at any time, and in such cases will make an announcement as appropriate. The board also reserves the right to reject any approach or terminate discussions with any interested party at any time.”

Revolution Beauty reported its sales had plunged 26% to £141.6m in the year to 28 February reflecting the continued rationalisation of its product and brand portfolio.

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