Waldencast Acquisition in a regulatory filing said it has raised an $8 million PIPE for its proposed merger with skin care brand Obagi and makeup and skin care brand Milk Makeup.
This funding follows a fully committed $105 million PIPE secured when the deal was announced last November.
The approximately $1.2 billion transaction is a first step in Waldencast’s strategy to create a global multi-brand beauty and wellness platform.
Obagi is a physician-dispensed brand in the dermo-cosmetic space.
Milk Makeup is a cult-favorite beauty brand among Gen-Z consumers.
The transaction will be funded by $345 million in the SPAC’s trust (subject to redemptions); a fully committed $333 million forward purchase agreement of which $160 million is provided by sponsors Waldencast Long-Term Capital and Dynamo Master Fund; the now $113 million PIPE and $475 million of seller rollover equity.
Obagi’s and Milk Makeup’s existing shareholders are expected to hold equity of 20.5% and 14.9% respectively (without giving effect to any redemptions), in the combined company. Read more.
