Cover FX Skin Care Limited

Client Profile

Founded over 20 years ago, New York-based Cover FX Skin Care Limited (“Cover FX” or the “Company”) is a beloved producer of clean, high-performance, vegan and cruelty-free cosmetics. All of its products are made with safe, non-toxic ingredients recommended for all skin types and offered in a global palette for every skin tone. Key product lines include primers, foundations, concealers, setting powders, setting sprays and mascara. With a customizable approach to color and coverage, the Company’s products engage customers with complexion-enhancing and skincare-loving makeup.

Situation

Cover FX’s products were primarily sold through dedicated cosmetic retailers and department stores. However, the pandemic caused the Company’s traditional retailers to reset shelf space, reduce inventory levels, and change purchasing patterns, which negatively impacted top-line sales. In response, Cover FX rapidly 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.

Solution

SSG was retained to conduct a comprehensive marketing process and solicit offers. Leveraging its significant consumer products experience, SSG canvassed a wide range of investors, delivering competitive offers from multiple strategic parties, including brand aggregators, that engaged in a thorough review of the business. The sale to AS Beauty proved to be the best solution as it provides Cover FX with the capital and operational expertise to execute its growth plan. SSG’s experience running efficient sale processes enabled Cover FX to continue operations, preserve the brand, maintain customer loyalty, and maximize value for all stakeholders.