Boohoo has announced that it is increasing its strategic investment into Revolution Beauty so that it now holds more than 25% in the beauty brand’s shares.
Revolution Beauty is a global mass beauty and personal care business which operates a multi-brand strategy.
Boohoo’s investment now makes it Revolution Beauty’s largest single shareholder, with a 26.47% stake.
A statement from the fashion firm on the London Stock Exchange (LSE) said the investment “builds upon the existing relationship between boohoo and Revolution Beauty”.
The company said the investment reflected its belief in the growth potential of the online cosmetics retailer, which currently had its shares suspended amid an accounting probe, and it is aiming to become a “supportive stakeholder and long-term partner”.
Subscribe to Charged Retail for free
Revolution Beauty sells its products through several of its direct-to-consumer sites and its online digital department store, Debenhams.
Boohoo said the investment reflects its belief in the growth potential of Revolution Beauty, adding it “intends to be a supportive stakeholder and long-term partner”.
Jefferies and Zeus Capital make up Boohoo’s nominated advisers.
Revolution’s digital partners include Prettylittlething, ASOS, Zalando, Lookfantastic and Amazon.
Revolution Beauty is currently undergoing an independent investigation into its audit for the year ended 28 February 2022, which is being carried out by Forensic Risk Alliance and Macfarlanes.