Beauty Bay hires bankers to review options after IPO halts | Economic news

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An online beauty platform that had drawn up plans for an IPO in London has hired bankers to look at options that could include an outright sale.

Sky News understands Beauty Bay, which was founded over 20 years ago by brothers Arron and David Gabbie, has appointed US-based Threadstone Capital to advise it.

City sources said Tuesday that Beauty Bay is considering a full or partial sale to new investors, but may also opt to acquire other businesses in a bid to continue its expansion.

An insider said the company was “not immune” to inflationary headwinds facing consumer goods groups, but insisted it was trading better than in the pre- Immediate COVID.

Beauty Bay, which is believed to be debt-free, is unlikely to raise the prospect of an initial public offering, which it had planned for last year.

Market volatility exacerbated by Russia’s invasion of Ukraine has left the London issues market temporarily moribund, although companies such as Burger King UK continue to hope to list this year.

Manchester-based Beauty Bay buys hard-to-find brands such as Anastasia Beverly Hills and The Ordinary and sells them to its rapidly growing customer base.

It is majority owned by the Gabbies.

The company’s forward-looking valuation is unclear, although a source said she hired Threadstone in part because of the company’s previous work as an adviser to Cult Beauty when it was sold to the company. THG listed in London last year.

Beauty Bay declined to comment.

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