Boohoo Group increases stake in Revolution Beauty to 26.47%
Online fashion group Boohoo has increased its strategic stake in affordable beauty brand Revolution Beauty and now holds more than a quarter of its stock.
Boohoo Group, which sells Revolution Beauty through a number of its websites including online department store Debenhams, said its stake now amounted to 26.47% of its stock. It first revealed its investment in Revolution Beauty in August of this year when it acquired more than 7% of its stock.
The latest share purchase comes as Revolution Beauty names its new CEO, Bob Holt, replacing founder Adam Minto who left last month, amid an investigation into the business over its failure to complete its auditing process quickly enough.
The independent investigation into Revolution Beauty is still being carried out by Forensic Risk Alliance and Macfarlanes and no conclusions have yet been drawn.
Boohoo Group said its latest 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 growth potential of Revolution Beauty and it intends to be a supportive stakeholder and long-term partner."
The move takes Boohoo's shareholding just under the threshold (30%) at which it would be obliged to make a formal bid for the entire company or make its long-term intentions clear, under Stock Market rules.
Bob Holt has been acting as CEO at Revolution Beauty since Minto's departure. He has served as CEO and Executive Chairman at a number of UK listed companies, including SureServe Group and Mears Group.
He said of his appointment today: "Over the past six weeks I have seen first-hand the quality of people working at Revolution Beauty, the overall popularity of the brand and innovation of products for customers around the world.
"I believe there is a huge opportunity for the business as it moves ahead and I am confident that, together with the team, we will drive the business forward."