Lenders Jefferies Finance, Cerberus Capital Management, FB Intermediate Holdings and &vest, have completed the acquisition of Forma Brands for $690 million. The collective of lenders is known as the Investor Group.
[update] Cliff Moskowitz, an operating partner at &vest, has joined Forma Brands as chief executive officer. Moskowitz brings more than 20 years of leadership experience in the retail industry, previously serving as the CEO of Outdoor Voices and managing InterLuxe Holdings.
As previously reported by Global Cosmetic Industry in January 2023, Forma Brands filed for Chapter 11 Bankruptcy and entered a definitive asset purchase agreement with the Investor Group.
The company received a commitment for approximately $33 million in debtor-in-possession financing from the Investor Group, according to Retail Dive.
In February 2023, Ariana Grande reacquired her r.e.m. beauty brand from Forma Brands for about $15 million.
At that time, Forma Brands also announced it was closing all of its U.S. stores.
Thomas Brady, president of Jefferies Finance LLC, said, "On behalf of the entire Investor Group, we are pleased to complete the acquisition of Forma Brands, enabling the company to move forward in a position of financial strength. With a new capital structure that includes additional liquidity and less debt, Forma Brands is poised to return to growth and increase profitability while it continues providing consumers around the globe with thoughtfully selected beauty products."
Simon Cowell, president of Forma Brands, said, "This marks the start of an exciting new chapter for Forma Brands. With new capital and the support of our Investor Group, we are moving forward with the resources necessary to support the execution of our new long-term growth strategy focused largely on our global wholesale and e-commerce operations. We are excited about the opportunities ahead for Forma Brands and our multi-category portfolio of innovative beauty brands."
Moskowitz said, "I am pleased to join Forma Brands as CEO. All of us at &vest are excited about this new partnership, and we look forward to helping to return Forma Brands to growth. The Company benefits from an innovative brand and marketing strategy, a strong portfolio—including Morphe, Morphe 2 and Born Dreamer—and an exceptional network of global creators, influencers, affiliate partners and retail partners. We see compelling opportunities to drive growth in the business, including new products, geographies and channel and distribution partners—all of which we are going to pursue."