Manscaped provides below-the-waist grooming products, most notably electric razors. The company differentiates itself from competitors by advertising its products as manly, bold and cutting-edge — specifically designed for men. Manscaped also sells other products, such as deodorant, moisturizer and body wash. These products are sold directly to consumers and also through major outlets such as Amazon (NASDAQ:AMZN), Target (NYSE:TGT) and Best Buy (NYSE:BBY).
Importantly, the Bright Lights team is familiar with investments in the consumer discretionary industry. Co-Chairmen John Howard and Allen Shapiro have previously invested in Skims, founded by Kim Kardashian, as well as Aviation Gin.
What else do you need to know about the newest SPAC merger with BLTS stock?
BLTS Stock: What You Need to Know
- Manscaped will be led by CEO and founder Paul Tran.
- Tran believes that Bright Lights has “unparalleled experience with celebrity partnerships” that wouldn’t have been accessible if Manscaped had taken the initial public offering (IPO) route.
- The merger will imply a $1 billion enterprise value for Manscaped.
- Additionally, the $305 million in proceeds that Manscaped will receive includes $75 million in fully committed private investment in public equity (PIPE) priced at $9.20 per share. Bright Lights CEO Michael Mahan stated that the price represents an “illiquidity discount” to compensate investors for locking up capital in the next few months.
- The PIPE investors include Channing Tatum, Shaolin Capital, Guggenheim Investments and Signia Venture Partners.
- Furthermore, Manscaped reported $285 million in trailing 12-month (TTM) revenue.
- Impressively, Manscaped’s TTM revenue was generated with only $23 million in equity funding.
- The company expects to grow to over $500 million in TTM revenue by 2023. It will achieve this through international growth and product expansion. Manscaped currently sells products in 38 countries.
- After the transaction is complete, Manscaped expects to have $235 million on its balance sheet and no debt.
- Existing Manscaped shareholders are expected to own 72% of the combined company.
- Finally, the company will be listed on the Nasdaq with the ticker MANS upon completion of the merger.
Editor’s note: This article was updated on Nov. 24 to correct the post-merger ticker for Manscaped.
On the date of publication, Eddie Pan did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.