Marc Anthony raises $242 mln from IPO, greenshoe to come

MAV Beauty Brands Inc, the holding company for Toronto-based beauty specialist Marc Anthony Cosmetics Inc, has closed its initial public offering in Canada. The company raised about $242 million in treasury and secondary proceeds.

As reported last month by PE Hub Canada, the IPO’s forthcoming greenshoe option could bring total proceeds to as much as $278 million.

Marc Anthony’s common shares will begin trading today on the Toronto Stock Exchange under the symbol MAV.

Founded in 1995 and led by Marc Anthony Venere, Marc Anthony develops, markets and distributes hair-care and body-care products. It was acquired in 2016 by U.S. private equity firm TA Associates.

With the IPO’s close, TA Associates’ ownership stake is expected to be reduced to about 32 percent, or 28 percent if the greenshoe option is fully exercised.

PRESS RELEASE

MAV Beauty Brands Completes Initial Public Offering

CONCORD, Ontario, July 10, 2018 (GLOBE NEWSWIRE) — MAV Beauty Brands Inc. (“MAV Beauty Brands” or “the Company”) (TSX:MAV) today announced the successful closing of its previously announced initial public offering and secondary offering of its common shares (the “Offering”) at a price of $14.00 per common share.

The common shares will commence trading today on the Toronto Stock Exchange under the symbol “MAV”.

“This IPO represents a very important milestone for our company and is a testament to the continued dedication of our highly motivated, passionate and entrepreneurial team, as well as the loyalty of our consumers and retailer partners across the world. As we embark on the next stage, we look forward to continuing to profitably scale the company to establish a truly iconic portfolio of brands,” said Marc Anthony Venere, Founder, President and Chief Executive Officer of MAV Beauty Brands.

The Offering included a treasury offering by MAV Beauty Brands and a secondary offering of common shares of MAV Beauty Brands by entities owned, controlled or managed by TA Associates Management, L.P., Marc Anthony Venere, and the Redmond Family (collectively, the “Selling Shareholders”). MAV Beauty Brands sold 9,000,000 common shares under the Offering at a price of $14.00 per share, for total gross proceeds to the Company of $126,000,000. Pursuant to the underwriting agreement, the Selling Shareholders sold an aggregate of 8,267,000 common shares at a price of $14.00 per share, for total gross proceeds to the Selling Shareholders of $115,738,000. The Company did not receive any proceeds from the secondary offering.

The Offering was co-led by CIBC Capital Markets, RBC Capital Markets and Jefferies Securities, Inc., together with BMO Capital Markets, National Bank Financial Inc., Raymond James Ltd., and Canaccord Genuity Corp.

The underwriters have been granted an over-allotment option (the “Over-Allotment Option”) from the Selling Shareholders to purchase up to an additional 2,590,050 common shares from the Selling Shareholders, on a pro rata basis, at a price of $14.00 per common share for additional gross proceeds of approximately $36,260,700 if the Over-Allotment Option is exercised in full. The Over-Allotment Option can be exercised for a period of 30 days from the closing date.

No securities regulatory authority has either approved or disapproved of the contents of this news release. The common shares have not been and will not be registered under the United States Securities Act of 1933, as amended (the “U.S. Securities Act”) or any state securities laws. Accordingly, the common shares may not be offered or sold within the United States unless registered under the U.S. Securities Act and applicable state securities laws or pursuant to exemptions from the registration requirements of the U.S. Securities Act and applicable state securities laws. This news release does not constitute an offer to sell or a solicitation of an offer to buy any securities of MAV Beauty Brands in any jurisdiction in which such offer, solicitation or sale would be unlawful.

About MAV Beauty Brands

MAV Beauty Brands is a high-growth global personal care company dedicated to providing consumers with premium quality, authentic and differentiated products. Our innovation-focused, next generation platform consists of complementary and rapidly growing personal care brands: Marc Anthony True Professional, Renpure and Cake Beauty. Our products include a wide variety of hair care, body care and beauty products such as shampoo, conditioner, hair styling products, treatments, body wash, and body and hand lotion across multiple collections that each serve a different and personalized consumer need. Our products are sold in over 25 countries around the world, in over 100 major retailers and through over 60,000 doors.

For further information:
Craig Armitage, Investor Relations
ir@mavbeautybrands.com
(416) 347-8954