AWARD: MacArthur Wins Dealmaker of the Year Award
MacArthur Companies won the prestigious ‘2024 Deal Maker of the Year’ award at the Smart Business Deal Makers Conference for the UOMA Beauty turnaround executed by MacArthur Beauty. The Smart Business Dealmakers conference is a middle market M&A conference that connects entrepreneurs, investors, and advisers for a dynamic day of content and networking in top U.S. business markets. The conference features informative sessions on topics ranging from raising capital to buying and selling companies to alternative asset investing, covering the entire breadth of the M&A landscape.
The Smart Business Dealmakers Dealmaker of the Year Award recognize exceptional individuals who are shaping the landscape of business and innovation. Two of our partners, Tony Bash and Todd Boren, will receive honors at the conference. The organizers will present the award to them during the event proceedings.
What makes the UOMA Beauty Deal noteworthy?
Nigerian-born entrepreneur Sharon Chuter founded the trailblazing cosmetics brand Uoma Beauty in 2019. Furthermore, the name “Uoma” means “beautiful” in Igbo. This reflects the brand’s mission to celebrate beauty in all forms. Additionally, Uoma Beauty offers a wide range of products for diverse skin tones and types. Moreover, it is renowned for its high-performance makeup like the celebrated “Say What?! Foundation.” Furthermore, this foundation boasts an extensive shade range and customizable formulas.
In addition to innovative products, Uoma Beauty led social advocacy initiatives. For instance, the #PullUpOrShutUp campaign promoted transparency and representation in beauty and corporate sectors. Not only did Uoma provide bold, vibrant cosmetics, but it also fostered self-expression and cultural diversity. Consequently, it pushed for a more inclusive beauty industry.
However, Uoma Beauty faced financial difficulties in early 2023 due to accelerating customer demand. Subsequently, in November 2023, MacArthur Beauty partnered with the MacArthur Fund to acquire all assets and intellectual property. Additionally, after this acquisition, the team took control to rebuild trust with customers, vendors, manufacturers, and other key stakeholders.
First and foremost, MacArthur stabilized inventory to fulfill orders from major retailers like JC Penney, Ulta Beauty, and Nordstrom. Next, they revamped the Uoma Beauty Shopify store capabilities to meet direct-to-consumer demands better. Simultaneously, they worked on other key priorities.
How Does This Deal Impact The Local M&A Community?
Firstly, Uoma Beauty put inclusivity at the forefront through products like its 51-shade Say What?! Foundation. Consequently, founder Chuter became a high-profile figure in 2020 after starting the Pull Up For Change movement. This urged beauty companies to share workforce diversity data.
The company’s collapse left a huge gap. Uoma had tapped into unmet needs for a highly loyal, profitable customer segment. After its demise, many consumers were underserved. Now, with MacArthur’s capital and expertise turnaround, loyal consumers can look forward to fulfilled orders. Additionally, retail partners will be supported to restock Uoma products. Importantly, the company will continue supporting the brand’s fostered inclusivity movement in beauty.
For the M&A community, this exemplifies how private equity can positively impact underserved markets. Notably, MacArthur stepped up to save a great brand, deliver quality cosmetics, delight consumers, exceed retail expectations, and champion inclusivity across beauty.
What Contributed To The Complexity Of This Deal?
In May 2023, founder Sharon Chuter announced her resignation as CEO and departure from Uoma Beauty’s board. Stating “I have relinquished all operational involvement,” she “stepped away from the boardroom for good.” Prior to this, Uoma faced challenges not fulfilling customer orders, not paying suppliers, and defaulting on debts in the US and UK. Consequently, the UK government issued a warning that it could be struck off the register threatening dissolution within two months in late November.
The brand’s last Instagram post occurred in August 2023. Meanwhile, retailers like Walmart and Harvey Nichols put Uoma products on clearance. Furthermore, consumers complained about unfulfilled orders on social media. Additionally, the brand’s press emails bounced back. Alarmingly, Chuter disappeared and could not be reached. However, the MacArthur Companies’ Managing Partner stated: “We saw an opportunity to save this brand and turn it around. Our goal is bringing Uoma’s wide shade range and beautiful packaging back to its loyal consumers.”
What’s Next?
Uoma now has the management expertise to stabilize operations, secure inventory, rebuild retail partnerships, and win back consumers. Operational and supply chain expertise has been crucial to MacArthur’s turnaround efforts. Enhanced direct-to-consumer eCommerce will also accelerate growth and improve margins for the Uoma brand. MacArthur is now securing additional new growth capital to ensure that Uoma can continue to meet consumer demand and expand into new markets.
