A billion dollars in revenue and 4.3 million subscribers — that’s what a Silicon Valley company hopes to create when it merges with a rival across the country.
Ipsy, a San Mateo-based beauty product subscription service, has purchased South Florida-based BoxyCharm Inc. for an undisclosed amount. Bloomberg reports that both companies will be separate brands operating under the combined name of BFA Industries — short for “Beauty For All.”
The merged company could go public in about 18 months, according to BFA CEO Marcelo Camberos — and it might not be done with the buyouts. Camberos — a co-founder and the CEO of Ipsy — told Bloomberg that management is still on the lookout for more potential acquisitions, hoping to leverage a large market share into a position of dominance among subscriptions.
“We are thrilled to add BoxyCharm to BFAI, complementing the IPSY offering and strengthening our position in the personalized beauty ecosystem,” Camberos said in the merger announcement, per Business Newswire. “… Joe (Martin, CEO of BoxyCharm) has built an amazing business and an avid community of beauty enthusiasts. BoxyCharm has always pushed us to be better and now that we’re under one roof, we’re looking forward to growing and innovating together.”
Scott Stanford, an Ipsy board member and partner at San Francisco-based Acme Capital, said the merger will help both brands boost their market share, as they target different demographics.
BoxyCharm CEO Joe Martin, who will be joining the board of BFA Industries, will continue to lead the BoxyCharm brand.
“2020 has only increased the appetite for the convenience of delivery, the joy of discovery and the appreciation for self-expression,” Martin said, per Business Newswire. “Joining BFAI is a great culture fit and provides an exciting opportunity to learn from each other, share best practices and apply operating efficiencies that will provide an even better shopping experience for our existing and new customers.”
Bloomberg reports that Ipsy — which is also called Personalized Beauty Discovery Inc. and was founded by Camberos, Jennifer Goldfarb and YouTube star Michelle Phan — took in $500 million in revenue last year, and is profitable. It was valued at $800 million when it last raised funds five years ago, and has so far raised about $100 million. It is backed by investment firm TPG.
Valuation data was not available at publication time for BoxyCharm, but according to Inc., the company pulled in $49 million in revenue in 2017.
Article courtesy of Silicon Valley Business Journal here