Manchester fashion etailer Boohoo has made further investment in Revolution Beauty, doubling its shareholding in the retailer from under three per cent to 7.1 per cent.
The online retailer, which made the announcement on the London Stock Exchange this morning, said in a statement: “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. The investment reflects Boohoo’s belief in the retail growth potential of Revolution Beauty and it intends to be a supportive stakeholder and long-term partner.”
The fashion retailer has made the investment at a time when Revolution Beauty’s shares are at a low. The beauty specialist floated just over a year ago with a valuation of almost £500 million, with its stock trading at 170p a share. However, when Boohoo made the acquisition shares were 17.2p.
Revolution sounded a profit warning in early August, and admitted last Thursday that auditors had flagged that accounting issues could have a “material impact” on its full-year results. Its shares have already rallied this morning upon the news of Boohoo’s investment and were trading at 29.5p just after opening.
In June 2020, Kent-based Revolution Beauty, signed a partnership agreement with another Manchester retailer, The Hut Group (THG). THG said the deal would complement the British beauty brand’s existing ecommerce offering and enable it to enter new markets. That deal, worth an overall total of £100m, involved global beauty brands Elemis, PZ Cussons Beauty, Burt’s Bees, Nuxe, By Terry, along with Revolution Beauty.
Revolution Beauty’s range includes cruelty-free and vegan makeup, skincare and haircare.