Manscaped scraps SPAC
Manscaped, a men's grooming brand, and SPAC Bright Lights Acquisition Corp. mutually agreed to terminate their planned merger.
Why it matters: While SPACs remain more active than IPOs, deal cancellations continue to mount.
State of play: More than 40 SPACs have been terminated since the beginning of the year, Bloomberg reported earlier this week.
- DTC brands that have gone public via a SPAC have not fared so well this year.
- Bark, the parent of BarkBox, and Hims & Hers are trading at a discount due to net losses and uncertainty around the future of those businesses.
- And while Manscaped's revenue grew 41% last year to $297 million and it generated a positive adjusted EBITDA of $5.2 million, it's had some difficulty with profitability.
- It recorded a net loss of $316 million, though the company said that included $309.8 million of non-cash share-based compensation costs.
What they're saying: "Although we are disappointed that current market conditions have made it unworkable to complete the merger with Manscaped, we are huge fans of the company and wish Paul and the rest of the team continued success,” said Bright Lights CEO Mike Mahan, in the statement.
- "We are confident in our long-term growth strategy and are excited about the future for Manscaped," Manscaped CEO Paul Tran, also in the statement.
- Manscaped did not immediately respond to a request for comment on what alternatives it might seek if any.
Flashback: As of late July, Tran told Axios that the company still planned to go public, while acknowledging some of the macro challenges.
- The company also recently named comedian Pete Davidson as its brand spokesperson and inked a distribution deal with pharmacy chain Walgreens.