// Boohoo has snapped up a 7.1% share in Revolution Beauty
// The online retailer said the investment reflects its belief in the retail growth potential of Revolution
Boohoo has made a strategic investment in Revolution Beauty taking its shareholding in the retailer to 7.1%.
Boohoo had previously been a shareholder but held less than 3% of shares in Revolution before more than doubling its stake last week.
The online retailer said: “The investment builds upon the existing relationship between Boohoo and Revolution Beauty, under which Revolution Beauty products are sold through several of the group’s direct to consumer brand websites and its online digital department store Debenhams.
“The investment reflects Boohoo’s belief in the retail growth potential of Revolution Beauty and it intends to be a supportive stakeholder and long-term partner.”
The fashion retailer has made the investment at a time when Revolution Beauty’s shares are at a low.
The beauty specialist floated just over a year ago at a valuation of almost £500 million with it stock trading at 170p a share. However, when Boohoo made the acquisition last Thursday shares were 17.2p.
Revolution’s shares took a battering over the past month as it sounded a profit warning in early August and admitted last Thursday that auditors had flagged that accounting issues could have a “material impact” on its full-year results.
Its shares have already rallied this morning upon the news of Boohoo’s investment and are trading at 29.5p currently.