Revolution Beauty rejects takeover bid from True paving way for capital raise
This marks a significant juncture for Revolution Beauty as it seeks to stabilize and rebuild after recent operational and financial challenges.
USA – Revolution Beauty has rejected a takeover bid from the UK-based private equity firm True, a move that sets the stage for the cosmetics company to pursue a capital raise from its existing shareholders.
The company initiated a formal sale process in May 2025 and, by June, had attracted interest from multiple parties.
However, True was the only group to submit a formal offer.
Sources familiar with the situation indicated that True’s bid was considered to undervalue Revolution Beauty, which is listed on the London Stock Exchange and sells its beauty and haircare products through major retailers like Boots and Superdrug.
Frasers Group, led by Mike Ashley, had also shown early interest but withdrew its bid last month.
In early June 2025, Frasers confirmed its participation in the formal sale process for Revolution Beauty and had been part of the sale discussions.
The group had considered making an all-cash offer for the embattled cosmetics company, which operates multi-brand and multi-category beauty products through both physical stores and online channels.
However, after conducting due diligence and assessing the situation, Frasers Group officially withdrew its takeover bid in June 2025.
The decision came amid Revolution Beauty’s significant financial challenges, including a 26% decline in annual revenue for 2025 and a drastic fall in market valuation from nearly £500 million (USD 673.4 million) at its post-pandemic IPO to around £12 million (USD 16.2 million).
With no other competing bids on the table, Revolution Beauty is likely to move forward with plans to raise capital from its current major shareholders, including British online fashion retailer Debenhams, the largest shareholder.
Debenhams’ participation in the capital raise may depend on the successful completion of its own debt refinancing.
The company is also engaged in talks with lenders to amend and extend the terms of its revolving credit facilities as part of its broader financial restructuring efforts.
Revolution Beauty’s management has confirmed ongoing engagement with shareholders regarding the potential equity raise, and further announcements are expected to be made in due course.
Sign up to receive our email newsletters with the latest news updates and insights from Africa and the World HERE.
