Skincare brands Obagi and Milk Makeup on Monday agreed to be acquired by special purpose acquisition company Waldencast WALD.
Hind Sebti, Waldencast's co-founder, who also held posts at L’Oréal and P&G, was named chief operating officer of the combined business.
Waldencast went public in March. The partnership aims to build a global multibrand beauty platform providing "the next generation of high-growth, purpose-driven brands," Brousset said in a statement.
At last check Waldencast shares were up 1.7% at $9.96.
The deal, valued at around $1.2 billion, is expected to close in the first half. The new company will trade on Nasdaq under the ticker WALD.
Obagi CEO Jaime Castle and Milk Makeup CEO Tim Coolican will remain responsible for their businesses, reporting to Brousset, a news release says.
Waldencast, New York, will be funded by $345 million of cash from the initial public offering; $333 million from forward purchase agreements, $105 million from a private investment in public equity priced at $10 a share; and $475 million of rollover equity from the sellers Obagi and Milk Makeup, according to the statement.
Milk Makeup, New York, is a clean vegan makeup brand that is sold at Sephora, among other retailers.
Long Beach, Calif.-based Obagi’s products are aimed at minimizing the appearance of sun damage, aging and acne, and are primarily available through dermatologists and other medical professionals.
SPACs, or blank-check companies, are formed for the express purpose of finding and merging with an operating partner. The idea is to speed the operating company to the public markets and avoid the extended process of a traditional initial public offering.