SSG Capital Advisors acted as the investment banker to Cover FX Skin Care in the sale of substantially all of its assets to AS Beauty Group. The transaction closed in December 2021.
Founded more than 20 years ago, New York-based Cover FX is a producer of vegan and cruelty-free cosmetics, including primers, foundations, concealers, setting powders, setting sprays and mascara.
Cover FX’s products were primarily sold through dedicated cosmetic retailers and department stores. However, the COVID-19 pandemic has caused the company’s traditional retailers to reset shelf space, reduce inventory levels and change purchasing patterns, negatively impacting top-line sales. In response, Cover FX accelerated its e-commerce and digital growth strategy, reduced costs and invested resources in its e-commerce platform. To achieve its long-term objectives, the company sought a strategic partner or investor to strengthen its capital base and solidify operations for future growth.
Cover FX retained SSG to conduct a marketing process and solicit offers for the business. SSG canvassed a range of investors, delivering offers from multiple parties that engaged in a review of the business, with AS Beauty Group ultimately providing the best offer.
