Waldencast Acquisition in an 8-K filing included additional materials for its investor presentation highlighting the proposed merger with Milk Makeup and Obagi Skin Care.
Obagi is a physician-dispensed brand in the dermo-cosmetic space.
Milk Makeup is a cult-favorite beauty brand among Gen-Z consumers.
The approximately $1.2 billion merger transaction is a first step in Waldencast’s strategy to create a global multi-brand beauty and wellness platform.
The transaction will be funded by $345 million in the SPAC’s trust (subject to any 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; a fully committed $105 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.
The transaction includes significant sponsor alignment with other shareholders in the form of the $160m FPA committed capital. The Waldencast leadership team will directly operate the combined business with a focus on driving growth and shareholder value. Read more.
