8 hours ago
1
Mike Ashley, the precocious thoroughfare billionaire, is exploring a cut-price takeover bid for struggling Revolution Beauty – a determination that would stoke animosity betwixt him and rival London-listed retailer Debenhams.
Sky News has learnt that Frasers Group, which owns retailers ranging from House of Fraser to Evans Cycles, has approached Revolution Beauty astir a imaginable connection for the company.
Retail manufacture sources said this play that Frasers was considering whether to bid but was not definite to bash so.
Revolution Beauty, which sells branded cosmetics, enactment itself up for merchantability past period arsenic it warned investors that it was evaluating options to found "a much robust superior operation with further superior to put into the company".
It said it had received a takeover attack from a 3rd enactment - thought to beryllium a notation to a bidder different than Frasers Group - and invited different suitors to interaction its advisers astatine Panmure Liberum, the concern bank.
To facilitate the merchantability process, Revolution Beauty has parachuted successful Iain McDonald, an experienced City fig whose directorships see a spot connected the committee of Debenhams Group, arsenic chairman.
Debenhams holds a ample number involvement successful Revolution Beauty, portion Frasers is simply a large shareholder successful Debenhams and blocked the alteration of its ineligible sanction from Boohoo earlier this twelvemonth by voting against the plan.
Revolution Beauty has had a torrid tally connected the London banal market, and present has a marketplace capitalisation of hardly £20m.
Its banal has collapsed by implicit 70% successful the past 12 months alone.
The institution has astatine assorted points been embroiled successful probes relating to its accounting and a multimillion lb colony with its founder, Adam Minto.
In January, it reached a colony with Chrysalis Investments, its erstwhile shareholder, aft it made a bid of allegations against the company.
Revolution, which positions itself arsenic a wide marketplace quality range, is sold done thousands of outlets including Superdrug stores successful the UK.
It built a beardown pursuing among younger consumers by forging collaborations with media properties including the ITV dating amusement Love Island.
Frasers' involvement successful acquiring Revolution Beauty would bespeak its increasing involvement successful expanding beyond axenic retailing successful caller years.
Under main enforcement Michael Murray, it has besides built stakes successful companies specified arsenic THG, the proprietor of quality brands specified arsenic LookFantastic.
Because the auction of Revolution Beauty is taking spot done a ceremonial merchantability process, the individuality of prospective bidders does not person to beryllium disclosed successful the accustomed way.
It was unclear connected Saturday whether Frasers intends to marque a connection confirming its involvement to the London banal marketplace adjacent week.
On Friday, shares successful Frasers closed astatine 728.5p, giving it a marketplace worth of £3.3bn.
Any connection for Revolution Beauty is thought to beryllium improbable to ascribe a important premium to its existent valuation.
Spokespeople for Frasers and Revolution Beauty some declined to comment.
English (US) ·