MAV Beauty Brands agrees to sell assets to Nexus Capital

• MAV Beauty Brands is a Vaughan, Ontario-based hair care and personal care company
• Nexus will acquire the company’s assets for a purchase price “significantly less than the current principal amount of the outstanding debt ($121.7 million)”
• A sale approval hearing is expected to take place on November 24

Nexus Capital Management has entered an asset purchase agreement with MAV Beauty Brands, a Vaughan, Ontario-based hair care and personal care company.

Nexus will acquire the assets of the company and its subsidiaries for a purchase price “significantly less than the current principal amount of the outstanding debt ($121.7 million),” according to a statement.

A sale approval hearing is expected to take place on November 24, with the anticipated closing of the deal to occur by year’s end, subject to the satisfaction or waiver of customary closing conditions.

The agreement is in connection with MAV’s financial and corporate restructuring through proceedings under the Companies’ Creditors Arrangement Act (CCAA) in the Ontario Superior Court of Justice.

Alvarez & Marsal Canada has been appointed as monitor of MAV in connection with the CCAA proceedings. Existing management will remain responsible for the day-to-day operations and, during the proceedings, the company’s board will remain in place.

MAV Beauty Brands markets a diversified portfolio of four complementary brands: Marc Anthony True Professional, Renpure, Cake Beauty and The Mane Choice. These hair care, face and body care beauty products are sold in more than 25 countries and in many major retailers.

MAV went public on the Toronto Stock Exchange (TSX) in 2018, raising about C$242 million. Prior to then, the company was owned by TA Associates. The trading of the company’s common shares is expected to halt, with TSX placing the company under delisting review.

Founded in 2013, Nexus is an alternative asset investment management firm based in Los Angeles.