Morphe Cosmetics parent Forma Brands completes sale to investor group and appoints new CEO

Forma Brands, the parent company of Morphe Cosmetics, has announced the successful completion of the previously announced sale to an investor group.

In addition to Jefferies Finance LLC, the company's new owners also includes &Vest, a consumer brand investment and operational platform with deep expertise in the beauty industry.

Thomas Brady, President of Jefferies Finance LLC, commented: "On behalf of the entire Investor Group, we are pleased to complete the acquisition of Forma Brands, enabling the Company to move forward in a position of financial strength. With a new capital structure that includes additional liquidity and less debt, Forma  Brands is poised to return to growth and increase profitability while it continues providing consumers around the globe with thoughtfully selected beauty products."

Forma Brands first filed for voluntary Chapter 11 bankruptcy in the US Bankruptcy Court for the District of Delaware on 12 January 2023. At the time, the firm announced it had entered into a definitive purchase agreement with a group of secured lenders, under which all of Forma Brands' assets would be acquired.

The proposed deal received court approval in March for £555 million ($690 million) in debt relief. The transaction is expected to "significantly strengthen" the company's financial position and provide additional support for the execution of its long-term growth strategy, which will largely focus on global wholesale and e-commerce operations.

In connection with the completion of the transaction, Cliff Moskowitz, an operating partner at &Vest, has joined FORMA Brands as Chief Executive Officer. He brings over 20 years of leadership experience in the retail industry, previously serving as the Chief Executive Officer of Outdoor Voices.

Simon Cowell, President of Forma Brands, added: "This marks the start of an exciting new chapter for Forma Brands. With new capital and the support of our Investor Group, we are moving forward with the resources necessary to support the execution of our new long-term growth strategy focused largely on our global wholesale and e-commerce operations. We are excited about the opportunities ahead for Forma Brands and our multi-category portfolio of innovative beauty brands."

Following the bancrupcy news, Ariana Grande reached a deal to buy assets tied to her r.e.m. beauty brand from Forma Brands.

The agreement, which included all existing inventory, was estimated at $15 million, according to Bloomberg. It also reported that Forma Brands had already agreed to end its licensing agreement with r.e.m. beauty shortly before its Chapter 11 filling.