Revolution Beauty Group has rejected a takeover offer from consumer-focused private equity firm True, as the embattled UK cosmetics brand continues to evaluate strategic options including a potential equity raise, according to a report by Reuters citing sources familiar with the matter.
The London-listed beauty group, which launched a formal sale process in May, received initial interest from multiple parties. However, True was the sole bidder to submit a formal proposal. The offer was ultimately deemed to undervalue the business, one of the sources said.
Revolution Beauty’s shares closed down 13% at 325 pence following the developments, reflecting investor uncertainty around the company’s near-term funding prospects.
Founded in 2014 and once valued at nearly £500m following its IPO during the post-pandemic listing boom, the company’s market capitalisation has since collapsed to around £12m, according to LSEG data. The firm retails cosmetics and personal care products through high street retailers including Boots, Superdrug, and online channels.
In a regulatory update issued Thursday, the company confirmed that its strategic review is ongoing, with continued engagement from multiple parties. It also reiterated that it is in discussions with shareholders regarding a potential equity raise, which sources say may now be revived in the absence of credible buyout alternatives.
Debenhams, which holds a significant equity position in Revolution Beauty, is expected to play a key role in any capital raise. However, its participation may depend on the outcome of its own debt refinancing process, one source added.
Private equity interest in the company appears to have cooled. Frasers Group, which had also evaluated a potential bid, formally withdrew from the process last month.
Separately, Revolution Beauty disclosed in May that it had entered negotiations with lenders to amend and extend its existing revolving credit facility.
