Arcade Beauty Announces Recapitalization to Strengthen the Company and Position its Business for Long-Term Success

NEW YORK , March 13, 2023 /PRNewswire/ -- Arcade Beauty, a leading global beauty company providing both retail and sampling solutions, today announced that it has concluded a recapitalization with the support of 100% of its lenders and shareholders. The transaction strengthens the company's financial foundation and positions the business for continued long- term success and growth. As part of the recapitalization, the company extinguished a substantial amount of debt and received a new capital infusion. Arcade Beauty is now owned by a consortium of leading global investment firms.

"This is a tremendous result, and we are elated by the support from our existing stakeholders who believe in the unique value proposition we offer our customers. As a result of this fully consensual transaction, we are well positioned to execute on our business strategy, invest in our future growth and drive value for all of our stakeholders," said Carl Allain, Chief Executive Officer of Arcade Beauty.

"This transaction will enable us to better serve our customers and partner more effectively with our supplier base to continue to deliver innovation, quality and high service levels. We are very excited to embark on this new chapter with a supportive board of directors and engaged investor base," added Jorge Garcia, Chief Financial Officer of Arcade Beauty.

The new board of directors issued the following joint statement regarding the transaction:

"We are excited to support Carl, Jorge and the company's broader management team in this new chapter of growth for Arcade Beauty. We believe the company's global capabilities, strong customer value proposition and best-in-class product innovation will be meaningfully enhanced with a newly recapitalized balance sheet and a highly aligned investor base. We look forward to partnering with the company to create significant value for all stakeholders."

Arcade Beauty was principally advised by Weil, Gotshal & Manges LLP, Stibbe Avocats, and Rothschild & Co. An ad hoc group of lenders was advised by Davis Polk & Wardwell LLP, Loyens & Loeff Luxembourg S.A R.L. and FTI Consulting, Inc.

This press release contains forward-looking statements that relate to future results and events that are not facts and constitute forward-looking statements. These forward-looking statements are based on Arcade Beauty's current expectations, estimates and assumptions and, as such, involve certain risks and uncertainties. The ability of Arcade Beauty to predict results or the actual effects of its plans and strategies is subject to inherent uncertainty. Actual results and events in future periods may differ materially from those expressed or implied by these forward-looking statements because of a number of risks, uncertainties and other factors. All statements other than statements of historical fact, including statements containing the words "intends," "believes," "expects," "will," and similar expressions, are statements that could be deemed to be forward-looking statements. In addition, the forward-looking statements represent Arcade Beauty's views as of the date as of which they were made. Arcade Beauty anticipates that subsequent events and developments may cause its views to change. However, although Arcade Beauty may elect to update these forward-looking statements at some point in the future, it specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Arcade Beauty's views as of any date subsequent to the date hereof.

Additional Information

Arcade Beauty is a leading provider of solutions to the beauty industry, including sampling and retail solutions. The company has a global footprint, with its 12 facilities servicing 400+ beauty brands worldwide. Arcade Beauty was formed in September 2014 via the merger of Arcade Marketing and Bioplan, two prominent sample packaging businesses based in New York and Paris, respectively.

SOURCE Arcade Beauty