MAV Beauty Brands, a hair and personal-care company facing financial difficulties, has announced its agreement to be acquired by private-equity firm Nexus Capital Management. The acquisition comes as MAV begins voluntary proceedings under Canada’s Companies’ Creditors Arrangement Act in the Ontario Superior Court of Justice.
Known for its popular brands such as Marc Anthony True Professional, Renpure, Cake Beauty, and the Mane Choice, MAV has been mired in debt, with approximately $121.7 million currently outstanding. In an effort to address these challenges and explore strategic alternatives, including a potential sale, the company initiated a strategic review in March.
After careful consideration and consultations with legal and financial advisors, MAV’s board concluded that commencing CCAA proceedings and entering into an agreement with Nexus would be the most advantageous course of action for the company and its subsidiaries. Restructuring the current capital structure was deemed necessary given the existing debt, rising costs, and interest rates, as refinancing or debt amendment proved unfeasible without significant reorganization.
MAV is optimistic that operations will continue uninterrupted throughout the CCAA proceedings. To facilitate the process and provide working capital, several senior secured lenders have committed to offering $3.9 million in debtor-in-possession financing. The sale approval hearing is scheduled for November 24, and the transaction is expected to close by the end of the year.
With this acquisition, MAV Beauty Brands aims to navigate its financial challenges and ensure a promising future for its well-established product lines.
