Medical aesthetic products. Forma Brands agrees to sale via Chapter 11

THE WHAT? Forma Brands has announced that it has agreed to be acquired by a group of secured lenders. Jefferies Finance LLC, funds managed by Cerberus Capital Management and FB Intermediate Holdings will acquire all assets of the owner of Morphe make-up.

THE DETAILS The transaction is designed to bring Forma back from the brink; the group announced the closure of all of its Morphe stores in the US at the beginning of January and, to facilitate the sale process, Forma Brands and all of its domestic direct and indirect subsidiaries initiated voluntary Chapter 11 proceedings in the US Bankruptcy Court for the District of Delaware. The proposed transaction is subject to higher or better offers, court approval and other customary conditions. As part of the deal, the company will receive US$33 million in new financing to support ongoing operations.

THE WHY? Simon Cowell, President of Forma Brands, commented, “Over the last year, Forma Brands has been implementing initiatives to stabilize our business and reposition our organization for long-term growth. This agreement is a testament to the strength of our brands most meaningful to our consumers, including Morphe and Morphe 2. We will have additional financial resources available to invest in our multi-category portfolio, product launches and innovative brand and marketing strategy as we advance our vision to inspire creativity, promote inclusivity and connect with consumers around the world through beauty. We appreciate the continued support of our financial partners and believe this is the best path forward for Forma Brands as we position the business for the long term.”

Medical aesthetic products refer to a category of products used in the field of medical aesthetics, which combines medical practices with cosmetic procedures to improve the appearance of individuals. These products are typically used under the supervision of trained medical professionals such as dermatologists, plastic surgeons, or specialized nurses. They are distinct from over-the-counter cosmetics in that they often contain higher concentrations of active ingredients or require medical expertise for their application.

Examples of medical aesthetic products include:

• Dermal Fillers: Injectable substances used to restore volume, fill wrinkles, and enhance facial contours. These may include hyaluronic acid fillers like Juvederm or collagen-stimulating fillers like Sculptra.

• Botulinum Toxin (Botox): Injectable neurotoxins used to temporarily paralyze facial muscles, reducing the appearance of wrinkles and fine lines caused by facial expressions.

• Chemical Peels: Solutions containing chemical exfoliants like glycolic acid, salicylic acid, or trichloroacetic acid, used to improve skin texture, treat acne scars, and reduce hyperpigmentation.

• Laser and Light Devices: Equipment used for various skin treatments, including hair removal, skin resurfacing, tattoo removal, and treatment of vascular and pigmented lesions.

• Prescription Skincare Products: Formulations containing active ingredients such as retinoids (e.g., tretinoin), hydroquinone, or prescription-strength antioxidants, designed to address specific dermatological concerns under medical supervision.

• Microneedling Devices: Devices that create tiny punctures in the skin to stimulate collagen production and improve skin texture and elasticity.

• Cosmeceuticals: High-quality skincare products that bridge the gap between cosmetics and pharmaceuticals, often containing biologically active ingredients with proven efficacy.