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Highlights

  • Revolution Beauty begins formal sale process after receiving an unsolicited preliminary bid.

  • Iain McDonald to be appointed non-executive chair to support strategic review; current chair steps down.

  • Deadline for potential bids set for 11 June amid UK takeover code offer period.

Revolution Beauty Group PLC (LSE:REVB) has initiated a formal sale process after receiving a preliminary takeover approach from an undisclosed party, the company confirmed on Wednesday.

The cosmetics and skincare company stated that the potential buyer has agreed to participate in the structured process, which will be overseen by corporate adviser Panmure Liberum. As part of this process, the company will undertake a comprehensive review of its funding structure and explore all strategic alternatives.

The deadline for submitting any offers has been set for 11 June, as the company enters an official offer period in accordance with the UK Takeover Code.

In conjunction with the strategic review, Revolution Beauty announced changes to its leadership. Iain McDonald, founder of Belerion Capital and a former director of The Hut Group (THG), will be appointed as non-executive chair, pending due diligence. He will replace Alistair McGeorge, who is stepping down from the board.

The company emphasised that there is no certainty any formal offer will materialise or that any transaction will ultimately take place.

The initiation of a formal sale process signals the company's intention to consider a range of strategic outcomes, which may include a full sale, partial divestment, capital restructuring, or other potential strategic partnerships.

Revolution Beauty, which is listed on London’s AIM market, has faced a number of challenges in recent years, including governance issues and accounting concerns that led to trading suspensions in 2022. Since then, the company has taken steps to stabilise operations and restore investor confidence.

The appointment of Iain McDonald is expected to bring additional expertise as the company navigates its next phase. McDonald has a track record in scaling consumer-facing digital businesses and has served in strategic roles across the investment and retail sectors.

The formal sale process allows for other interested parties to enter discussions with the company under a structured framework. Revolution Beauty has not disclosed the identity of the initial bidder, nor the terms of the indicative offer received.