Revolution Beauty has reportedly rejected a takeover offer from a specialist private equity firm following the retailer’s launch of a formal sales process in May.
After rejecting a bid from private equity firm True, the retailer is now likely to bring back a capital raising from existing shareholders, sources told Reuters.
True was the only firm to submit a bid for a takeover in what sources said were private talks. One person close to the situation said the offer was viewed as undervaluing the company.
Revolution Beauty has received proposals from various parties, with an unnamed company’s preliminary takeover approach sparking a formal sales process.
One named interested party was Frasers Group, but the Mike Ashley-owned business later pulled out and had no intention of making a formal bid.
Following unsuccessful proposals, Revolution Beauty is now likely to revive plans to raise funds from key shareholders if no formal bids are made.
Just before announcing a formal sales process, the retailer said it was “reviewing its funding structure” and “exploring discussions in respect of support for an equity raise from its key shareholders.”
A source added that Debenhams’, one of the key shareholders, participation in an equity raise could rest on the completion of its own debt refinancing strategy.
In a statement on the London Stock Exchange, Revolution Beauty responded to “recent press speculation” to the formal sale process and potential capital raise.
The retailer said: “The formal sale process, announced on 21 May 2025, continues to progress with ongoing engagement with a number of parties.
“As previously announced, the Company continues to advance its engagement with its shareholders, including in respect of a potential equity raise.
“Further announcements will be made as appropriate.”
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